Barclays has adjusted its price target for Vipshop (VIPS, Financial), reducing it from $20 to $19, while maintaining an Overweight rating on the stock. Despite delivering mixed results for the first quarter, the company is projected to experience a resurgence in growth in the latter part of 2025, according to analysts. This outlook provides investors with cautious optimism about the company's future prospects.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 22 analysts, the average target price for Vipshop Holdings Ltd (VIPS, Financial) is $16.36 with a high estimate of $19.98 and a low estimate of $11.99. The average target implies an upside of 13.29% from the current price of $14.44. 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 $15.97, suggesting a upside of 10.6% from the current price of $14.44. 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: May 20, 2025
- 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%.
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.
