- Vipshop (VIPS, Financial) reports Q1 2025 net revenues of RMB26.3 billion (US$3.6 billion), a 4.7% decrease year-over-year.
- Net income falls to RMB1.9 billion (US$267.7 million) from RMB2.3 billion in the previous year.
- Company announces a new US$1.0 billion share repurchase program through February 2027.
Vipshop Holdings Limited (VIPS), a leading online discount retailer for brands in China, announced its unaudited financial results for the first quarter of 2025. Total net revenues stood at RMB26.3 billion (US$3.6 billion), marking a 4.7% decrease from the RMB27.6 billion reported in the same period last year.
The company's net income also saw a decline, dropping by 17.4% to RMB1.9 billion (US$267.7 million) from RMB2.3 billion a year ago. This was accompanied by a decrease in active customers, which fell from 43.1 million to 41.3 million, and a decline in total orders from 178.5 million to 167.2 million.
Despite these challenges, Vipshop maintained a solid gross margin of 23.2%, slightly below last year's 23.7%. The company emphasized cost discipline, with fulfillment expenses reduced by 4.8% and technology expenses down by 6.8%. However, marketing expenses increased by 6.0% as the company aimed to stimulate demand.
Vipshop's cash position remains robust, with RMB28.9 billion (US$4.0 billion) in cash and cash equivalents as of March 31, 2025. The company has fully utilized its previous US$1.0 billion share repurchase program and has launched a new US$1.0 billion program effective through February 2027, underscoring management's confidence in the company's intrinsic value despite current challenges.
Looking forward, Vipshop has provided guidance for the second quarter of 2025, projecting revenues between RMB25.5 billion and RMB26.9 billion, indicating a potential year-over-year decline of 0-5%. The strategic focus remains on expanding the "Super VIP" customer segment, which showed double-digit growth despite the overall decrease in active customers.
