- Total Net Revenues: RMB26.3 billion, compared with RMB27.6 billion in the prior year period.
- Gross Profit: RMB6.1 billion, compared with RMB6.5 billion in the prior year period.
- Gross Margin: 23.2%, compared with 23.7% in the prior year period.
- Total Operating Expenses: Decreased by 1.6% year-over-year to RMB4.0 billion.
- Fulfillment Expenses: Decreased by 4.8% year-over-year to RMB1.9 billion.
- Marketing Expenses: Increased by 6.0% year-over-year to RMB732.1 million.
- Technology and Content Expenses: Decreased by 6.8% year-over-year to RMB449.1 million.
- General and Administrative Expenses: Increased by 2.3% year-over-year to RMB950.8 million.
- Income from Operations: RMB2.3 billion, compared with RMB2.8 billion in the prior year period.
- Operating Margin: 8.7%, compared with 10.0% in the prior year period.
- Net Income Attributable to Shareholders: RMB1.9 billion, compared with RMB2.3 billion in the prior year period.
- Net Margin Attributable to Shareholders: 7.4%, compared with 8.4% in the prior year period.
- Non-GAAP Net Income Attributable to Shareholders: RMB2.3 billion, compared with RMB2.6 billion in the prior year period.
- Non-GAAP Net Margin Attributable to Shareholders: 8.8%, compared with 9.3% in the prior year period.
- Cash and Cash Equivalents: RMB28.9 billion as of March 31, 2025.
- Short-term Investments: RMB192.3 million as of March 31, 2025.
- Revenue Guidance for Q2 2025: Expected to be between RMB25.5 billion and RMB26.9 billion, representing a year-over-year decrease of approximately 5% to 0%.
Release Date: May 20, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Vipshop Holdings Ltd (VIPS, Financial) reported positive growth in the apparel category for the first quarter.
- The Super VIP membership program saw an 18% increase in active members, contributing to 51% of online spending.
- The 'Made for Vipshop' program continued to outperform, with over 200 brands joining by the end of March.
- The company is leveraging AI to enhance customer experience, including improving search recommendations and creating high-impact content.
- Vipshop Holdings Ltd (VIPS) maintained solid profitability despite sales pressure, demonstrating operational efficiency.
Negative Points
- Total net revenues for the first quarter decreased to RMB26.3 billion from RMB27.6 billion in the prior year period.
- Gross profit and gross margin both declined compared to the previous year, indicating pressure on profitability.
- Operating expenses as a percentage of total net revenues increased slightly, impacting overall margins.
- Net income attributable to Vipshop's shareholders decreased to RMB1.9 billion from RMB2.3 billion in the prior year period.
- The company expects a year-over-year revenue decrease of approximately 5% to 0% for the second quarter of 2025.
Q & A Highlights
Q: Can management comment on the recent consumer sentiment and the outlook for revenue and earnings for the full year 2025?
A: Eric Shen, CEO: We have observed signs of improvement in consumer sentiment. After a slow start in January and February, sales improved in March, and the momentum continued into April and May. We expect to regain growth in the second half of the year, with margins remaining stable due to disciplined investment and management.
Q: How is the June 18 campaign different from last year, and what is the current consumer sentiment?
A: Eric Shen, CEO: The industry promotion has become lengthy, lasting a month. Consumers are accustomed to promotions and subsidies, focusing on value and deals. Vipshop continues to offer unique, quality, off-price deals to attract consumers.
Q: Does the company have any plans for a secondary listing in Hong Kong?
A: Mark Wang, CFO: We are closely monitoring capital market developments and evaluating the option of a Hong Kong listing internally. We will update the market if there is any progress.
Q: What is the strategy to drive SVIP growth, and what are the goals for the second half and next year?
A: Eric Shen, CEO: We aim to continue double-digit growth for SVIP customers by offering unique, exclusive off-price products and invite-only private sales. We expect SVIP contribution to online spending to increase from the current 51%.
Q: How is the competitive landscape changing amid macro uncertainty in e-commerce?
A: Eric Shen, CEO: The environment is hyper-competitive. Vipshop focuses on discount retail for brands, emphasizing great merchandise, prices, and services. We aim to become the online outlet for deep discount product offerings.
Q: What are the latest trends in shopping frequency and ARPU for Super VIP members?
A: Eric Shen, CEO: SVIP metrics are stable, with a slight decline due to new members. We aim to increase loyalty and cross-category purchases through unique merchandising. Family shoppers present significant potential for growth.
Q: What is the latest trend for return rates?
A: Eric Shen, CEO: Return rates have stabilized, with a slight increase of over 2 percentage points. Our stable return policy has moderated return rates over time.
Q: Does management maintain the previous capital return guidance for this year?
A: Mark Wang, CFO: Despite industry challenges, we are confident in achieving stable profits and cash inflow. We plan to return no less than 75% of our full-year 2024 non-GAAP net income to shareholders through share repurchase and dividends.
Q: What is the impact of the trading program on sales and GMV?
A: Eric Shen, CEO: The trading program, mainly covering home appliances, contributes around 1% of total GMV and is not expected to significantly impact financial performance.
Q: How does the Shan Shan Outlets lease program affect strategy?
A: Mark Wang, CFO: The outlets business is growing, and we see synergies with Vipshop's online discount retail. The lease program allows for efficient expansion through new projects and acquisitions.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
