GUANGZHOU - Vipshop Holdings Limited (NYSE: NYSE:VIPS) reported third quarter earnings that fell short of analyst expectations, sending shares down 1.8% in early trading.
The Chinese online discount retailer posted adjusted earnings per share of RMB2.47 ($0.35), missing the consensus estimate of RMB2.49. Revenue came in at RMB20.7 billion ($2.9 billion), slightly above expectations of RMB20.65 billion but down 9.2% year-over-year.
"Our third-quarter performance reflected soft industry trends in discretionary categories," said Eric Shen, Chairman and CEO of Vipshop. He noted the company swiftly adapted its business priorities to address external challenges.
For the fourth quarter, Vipshop expects revenue between RMB31.2 billion and RMB32.9 billion, representing a year-over-year decrease of approximately 5% to 10%.
The number of active customers in Q3 declined to 39.6 million from 42.3 million a year ago. Total (EPA:TTEF) orders also fell to 163.9 million from 179.9 million in the prior year period.
Despite the earnings miss, Vipshop maintained solid profitability through disciplined financial management. The company continued to invest in growth initiatives while returning value to shareholders through share repurchases.
"We continued to invest to grow, reallocating resources to maximize customer impact and growth, with the goal of creating a better balance in our business," said CFO Mark Wang.
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