Vipshop Holdings Limited reported third‑quarter 2025 revenue of RMB 21.4 billion (US$3.0 billion), a 3.4 % year‑over‑year increase that surpassed the consensus estimate of RMB 21.07 billion (US$2.9 billion). The beat was driven by stronger demand in core categories and a 10 % rise in the Super VIP loyalty program, which attracted double‑digit growth in active members and higher average order values.
Gross profit fell to RMB 4.9 billion, down from RMB 5.0 billion a year earlier, and the gross margin contracted to 23.0 % from 24.0 %. The compression reflects higher fulfillment costs and a shift toward lower‑margin flash‑sale inventory, offsetting the revenue lift. Operating expenses rose to RMB 3.9 billion, or 18.5 % of revenue, up from 18.2 % a year ago, as the company invested in AI‑driven merchandising and logistics automation.
Operating income reached RMB 1.26 billion (US$177 million), a 7.5 % non‑GAAP operating margin, slightly below the 7.8 % margin reported a year earlier. The modest decline is attributable to the higher operating expense mix and the cost of scaling AI initiatives, which are expected to generate long‑term efficiency gains. Management highlighted that the investment in AI and technology is a key lever for future profitability, even as it temporarily pressures margins.
Net income attributable to shareholders rose 16.8 % to RMB 1.2 billion (US$171 million). Non‑GAAP EPS per diluted ADS was RMB 2.98 (US$0.42), beating the consensus estimate of RMB 2.91 (US$0.35) by RMB 0.07 (about 2.4 %). The earnings beat was driven by disciplined cost management and the continued growth of the Super VIP program, which increased customer lifetime value and reduced marketing spend per acquisition.
The company repurchased US$24.6 million of its ADSs during the quarter under its $1.0 billion share‑repurchase program, leaving an unutilized balance of US$621.4 million. Vipshop reiterated its commitment to shareholder returns, noting that it has already returned over US$730 million in dividends and buybacks in 2025. CEO Eric Shen said the company “has successfully regained business growth in the third quarter, driven by positive customer momentum, especially double‑digit growth in Super VIP members, and broad‑based strength across core categories.”
For Q4 2025, Vipshop guided total net revenues of RMB 33.2 billion to RMB 34.9 billion, a year‑over‑year increase of 0 % to 5 %. The guidance reflects confidence in sustaining revenue momentum while acknowledging margin compression. CFO Mark Wang noted that the company is “confident on long‑term value creation” and that disciplined investment in technology will support future profitability. Investors reacted cautiously, weighing the earnings beat against the margin compression and the modest revenue guidance.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.