Vipshop Holdings (NYSE:VIPS) had a dismal Tuesday as the company reported its latest quarterly earnings results, which were subpar for its standards.
The company — which is one of the biggest online discount retailers for brands in China — unveiled its results for its second quarter of its fiscal 2018. Its total net revenue for the period increased roughly by 18.4% compared to the yer ago period to RMB20.7 billion (US$3.1 billion) from RMB17.5 billion.
Vipshop Holdings added that the number of active customers for the period was up from 28.1 million to 29.8 million year-over-year, marking a 6% surge. Its total orders for the period gained 31% compared to the year-ago period to 111.3 million from 84.8 million.
Gross profit for the period was also up by roughly 4.8% compared to the year-ago quarter to RMB4.0 billion (US$611.1 million) from RMB3.9 billion. Vipshop Holdings’ net income attributable to shareholders increased by 76.4% compared to the year-ago quarter to RMB681.6 million (US$103.0 million) from RMB386.5 million.
The company’s adjusted net income attributable to shareholders was RMB576.9 million (US$87.2 million), beating the RMB672.6 million from the prior-year period. “In the second quarter of 2018, we saw a positive trend in the growth of the number of active customers and continued improvement in customer stickiness,” said Vipshop Chairman and CEO Eric Shen.
“We worked closely with our strategic partners, Tencent and JD.com, in order to unlock the value the strategic alliance presents for all three parties,” he added. “As such, we are keenly focused on our merchandising strategy, which will further fortify our position as China’s leading online discount retailer.”
VIPS stock fell about 15.8% on Tuesday following the news.