Vipshop Holdings Earnings: Here’s Why Investors are Excited Now

Vipshop Holdings Ltd – ADR (NYSE:VIPS) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 10.51%.

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Vipshop Holdings Ltd – ADR Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $0.17 in the quarter versus EPS of $-0.25 in the year-earlier quarter.

Revenue: Rose 206.79% to $310.66 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: reported adjusted EPS income of $0.17 per share. By that measure, the company beat the mean analyst estimate of $0.04. It beat the average revenue estimate of $268.74 million.

Quoting Management: Mr. Eric Shen, Chairman and CEO of Vipshop, stated, “This quarter, we are very pleased with our strong momentum, which continues to validate the strengths of our differentiated e-commerce model. Our revenues, fueled by steady growth in both active customers and total orders, again exceeded our expectations during the quarter. Despite the seasonality associated with the Chinese New Year holiday, we saw a faster and stronger rebound in customer spending and activities in the wake of the holiday period as compared to previous years, demonstrating the increased appeal of our platform to customers looking for uniquely priced offers on their favorite brands. Moreover, benefiting from our focus on optimizing product selection, we expanded our partnerships with higher-end brands, which enabled us to attract more high-income customers, further driving our sales volume while elevating our overall brand image. These network and scale effects associated with our unique online discount retail model, offering our thousands of brand partners higher financial returns, faster turnover and, most importantly, reduced brand dilution, further separate us from our existing or emerging competitors in China. These attributes exemplify the long-term value and sustainability we provide to our growing base of brand partners and customers and provides us increasing confidence in our ability to continue our success.”

Key Stats (on next page)…

Revenue decreased 0% from $0 in the previous quarter. EPS increased 6.25% from $0.16 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.11 to a profit $0.15. For the current year, the average estimate has moved down from a profit of $0.97 to a profit of $0.86 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)