Q2 2026 Vipshop Holdings Limited Earnings Call Transcript
Key Points
- SVIP membership grew 8% year-over-year, driving 54% of online spending, showing strong loyalty and resilience.
- Shan Shan Outlets achieved over 20% GMV growth in the first half, with expectations of continued double-digit same-store sales growth.
- Successful listing of two REITs, including the largest commercial REIT in China, creating a capital recycling loop for expansion.
- New $1 billion share repurchase program and commitment to return at least 75% of 2025 non-GAAP net income to shareholders.
- Gross margin remained stable at 23.3%, with disciplined cost management and a focus on profitable growth rather than unprofitable subsidies.
- Total net revenues declined 4.3% year-over-year to RMB24.7 billion, reflecting broad-based softening in consumer sentiment.
- Non-GAAP net income dropped significantly to RMB392.2 million from RMB2.1 billion, impacted by a one-time withholding tax adjustment.
- Operating margin declined to 8.1% from 9.3% year-over-year, partly due to deleverage from higher fulfillment expenses and rising return rates.
- Third-quarter revenue guidance indicates a year-over-year decrease of up to 5%, with management expecting similar consumer sentiment in the second half.
- The withholding tax adjustment of RMB1.56 billion increases the cost of future dividend repatriation, potentially affecting capital allocation flexibility.
Ladies and gentlemen, good day, everyone, and welcome to Vipshop Holdings Limited second quarter 2026 earnings conference call. At this time, all participants are in the listen only mode.
I would now like to turn the call over to Ms. Jessie Zheng, Vipshop's Head of Investor Relations. Please proceed.
Thank you, operator. Hello, everyone, and thank you for joining Vipshop's second quarter 2026 earnings conference call. With us today are Eric Shen, our Co-founder, Chairman, and CEO; and Mark Wang, our CFO.
Before management begins their prepared remarks, I would like to remind you that the discussion today will contain forward-looking statements made under the Safe Harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from our current expectations. Potential risks and uncertainties include, but are not limited to, those outlined in our
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