Vipshop Registers 17% Revenue Decline In Q2 Due To Lower GMV

Vipshop Holdings Limited VIPS reported a second-quarter FY22 revenue decline of 17.1% year-on-year to $3.66 billion, beating the consensus of $3.39 billion.
Drivers: Vipshop's GMV declined 15.6% Y/Y to RMB40.6 billion. The number of active customers decreased 18.4% Y/Y to 41.7 million. Total orders fell 15.9% Y/Y to 186.3 million.
Resilient Margins: The gross margin expanded 40 bps to 20.5%. The non-GAAP operating margin increased 40 bps to 6.3%.
Non-GAAP earnings per ADS of $0.37 beat the consensus of $0.20.
Vipshop held $3.2 billion in cash and equivalents. It generated $666.7 million in operating cash flow.
Outlook: Vipshop sees Q3 revenue of RMB21.2 billion - RMB22.4 billion, representing a year-over-year decrease rate of approximately 15% - 10%.
Price Action: VIPS shares traded higher by 0.52% at $9.67 in the premarket session on the last check Friday.