Vipshop Holdings Limited announced its unaudited financial results for the third quarter ended September 30, 2024, reporting total net revenues of RMB20.7 billion (US$2.9 billion). This represents a decrease from RMB22.8 billion in the prior year period, reflecting soft industry trends in discretionary categories.
The company's gross profit for the quarter was RMB5.0 billion (US$706.1 million), down from RMB5.4 billion year-over-year, though the gross margin increased to 24.0% from 23.6%. However, non-GAAP net income attributable to shareholders declined to RMB1.3 billion (US$186.8 million) from RMB1.8 billion in the prior year, with non-GAAP net income per diluted ADS at RMB2.47 (US$0.35) compared to RMB3.33.
Operational metrics also showed declines, with active customers decreasing to 39.6 million from 42.3 million, and total orders falling to 163.9 million from 179.9 million. Gross Merchandise Value (GMV) was RMB40.1 billion, down from RMB42.5 billion. The company reported negative free cash flow of RMB590.3 million (US$84.1 million) for the quarter.
Despite these challenges, Vipshop repurchased US$275.0 million worth of its ADSs during the quarter, with US$55.3 million remaining under its current US$1.0 billion program. A new US$1.0 billion share repurchase program was authorized in August 2024, set to commence upon full utilization of the existing program.
For the fourth quarter of 2024, Vipshop expects total net revenues to be between RMB31.2 billion and RMB32.9 billion. This forecast represents a year-over-year decrease of approximately 10% to 5%, indicating continued headwinds for the company.
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.