Vipshop Shares Drop As Q3 Earnings Disappoint, Issues Q4 Outlook Below Consensus

  • Vipshop Holdings Ltd VIPS reported third-quarter FY21 revenue growth of 7.5% year-on-year to $3.867 billion, marginally missing the consensus of $3.89 billion.
  • Drivers: Vipshop's GMV expanded 5% Y/Y to RMB40.2 billion.
  • The number of active customers improved from 43.4 million to 43.9 million.
  • Total orders were flat at 172.9 million.
  • Margins: The gross margin contracted 170 bps to 19.4%.
  • The non-GAAP operating margin contracted 220 bps to 4.2%.
  • Vipshop held $2.6 billion in cash and equivalents. It used $261.7 million in operating cash flow during the quarter.
  • Non-GAAP earnings per ADS of $0.23 missed the consensus of $0.25.
  • "We have delivered top-line growth in line with our expectations, primarily driven by the solid contribution from our high-value customers who helped improve the overall average revenue per user," CFO David Cui said.
  • Outlook: Vipshop sees Q4 revenue of RMB35.8 billion - RMB37.6 billion, representing $5.56 billion - $5.83 billion, below the consensus of $6 billion.
  • Price Action: VIPS shares traded lower by 9.65% at $11.05 in the premarket session on the last check Thursday.

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