Why Vipshop Shares Are Sliding Today - Vipshop Holdings (NYSE:VIPS)

Vipshop Holdings Limited VIPS reported a first-quarter FY22 revenue decline of 11.1% year-on-year to $3.98 billion, missing the consensus of $4.16 billion.
Drivers: Vipshop's GMV declined 7.6% Y/Y to RMB42.6 billion. The number of active customers decreased 7.9% Y/Y to 42.2 million. Total orders fell 5.2% Y/Y to 166.4 million.
Resilient Margins: The gross margin was flattish at 19.8%. The non-GAAP operating margin was flattish at around 6%.
Non-GAAP earnings per ADS of $0.33 beat the consensus of $0.31.
Vipshop held $3.05 billion in cash and equivalents. It used $(188.7) million in operating cash flow.
Outlook: Vipshop sees Q2 revenue of RMB22.2 billion - RMB23.7 billion, representing a year-over-year decrease rate of approximately 25% - 20%.
Share Buyback: On March 31, the board approved a new share repurchase program of up to $1 billion of its ADSs.
Price Action: VIPS shares traded lower by 7.03% at $7.80 in the premarket session on the last check Thursday.