BRIEF: Vipshop forecasts potential return to revenue growth in third quarter
Discount e-commerce company Vipshop Holdings Ltd. (VIPS.US) last Thursday reported a fifth consecutive quarter of falling revenue, as it moved to reassure investors by saying its situation was stabilizing and it could soon return to revenue growth.
The company reported 25.8 billion yuan ($3.6 billion) in revenue for the quarter, down 4% from the 26.9 billion yuan it reported a year earlier. Its net income also fell 21% to 1.5 billion yuan from 1.9 billion yuan a year ago. The company’s active customers and total orders also both fell year-on-year during the quarter, though its gross merchandise value (GMV) rose 1.7%.
As its situation stabilizes, the company forecast it could return to revenue growth in the third quarter. It forecast revenue of 20.7 billion yuan to 21.7 billion yuan for the three months to September, which would represent growth of between 0% and 5%.
Vipshop’s shares rose 5.9% on Thursday after the publication of its latest results, but gave back some of those gains on Friday. The stock is up about 28% year-to-date.
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