VIPS anticipates that its total net revenues for the second quarter of 2025 will range from RMB25.5 billion to RMB26.9 billion. This projection signifies a potential year-over-year decrease of approximately 5% to no change. The company's forecast is based on its current outlook regarding market and operational conditions, which may evolve over time.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 23 analysts, the average target price for Vipshop Holdings Ltd (VIPS, Financial) is $16.54 with a high estimate of $20.00 and a low estimate of $12.00. The average target implies an upside of 6.89% from the current price of $15.47. More detailed estimate data can be found on the Vipshop Holdings Ltd (VIPS) Forecast page.
Based on the consensus recommendation from 23 brokerage firms, Vipshop Holdings Ltd's (VIPS, Financial) average brokerage recommendation is currently 2.5, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Vipshop Holdings Ltd (VIPS, Financial) in one year is $16.00, suggesting a upside of 3.43% from the current price of $15.47. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Vipshop Holdings Ltd (VIPS) Summary page.
VIPS Key Business Developments
Release Date: February 21, 2025
- Total Net Revenues (Q4 2024): RMB33.2 billion, compared with RMB34.7 billion in the prior year period.
- Gross Profit (Q4 2024): RMB7.6 billion, compared with RMB8.2 billion in the prior year period.
- Gross Margin (Q4 2024): 23.0%, compared with 23.7% in the prior year period.
- Total Operating Expenses (Q4 2024): RMB5.1 billion, compared with RMB4.9 billion in the prior year period.
- Operating Margin (Q4 2024): 8.6%, compared with 10.6% in the prior year period.
- Net Income Attributable to Shareholders (Q4 2024): RMB2.4 billion, compared with RMB3.0 billion in the prior year period.
- Net Margin Attributable to Shareholders (Q4 2024): 7.4%, compared with 8.5% in the prior year period.
- Non-GAAP Net Income Attributable to Shareholders (Q4 2024): RMB3.0 billion, compared with RMB3.2 billion in the prior year period.
- Cash and Cash Equivalents (as of Dec 31, 2024): RMB27.0 billion.
- Short-term Investments (as of Dec 31, 2024): RMB1.9 billion.
- Total Net Revenues (Full Year 2024): RMB108.4 billion, compared with RMB112.9 billion in the prior year.
- Gross Margin (Full Year 2024): 23.5%, compared with 22.8% in the prior year.
- Operating Margin (Full Year 2024): 8.5%, compared with 8.1% in the prior year.
- Net Income Attributable to Shareholders (Full Year 2024): RMB7.7 billion, compared with RMB8.1 billion in the prior year.
- Non-GAAP Net Income Attributable to Shareholders (Full Year 2024): RMB9.0 billion, compared with RMB9.5 billion in the prior year.
- Revenue Guidance (Q1 2025): Expected to be between RMB26.3 billion and RMB27.6 billion, representing a year-over-year decrease of approximately 5% to 0%.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Vipshop Holdings Ltd (VIPS, Financial) delivered results above expectations in the fourth quarter, indicating strong execution and adaptability.
- The apparel category experienced positive growth, contributing to 75% of total GMV, the highest in the company's history.
- Super VIP membership saw a 50% increase in active members, accounting for 51% of online spending in the fourth quarter.
- The company successfully introduced over 1,500 new brands, including partnerships with high-profile global brands.
- Vipshop Holdings Ltd (VIPS) achieved an eight-year high gross margin of 23.5% for the full year, driven by the strong performance of the apparel business.
Negative Points
- Total net revenues for the fourth quarter decreased to RMB33.2 billion from RMB34.7 billion in the prior year period.
- Gross profit and operating margin both saw declines compared to the prior year period, indicating pressure on profitability.
- Marketing expenses increased by 10.3% year-over-year, impacting overall cost management.
- Net income attributable to Vipshop's shareholders decreased to RMB2.4 billion from RMB3.0 billion in the prior year period.
- The company anticipates a year-over-year decrease in total net revenues for the first quarter of 2025, reflecting ongoing market challenges.
