Vipshop’s revenue drops in ‘challenging consumer environment’

Discount e-commerce site operator Vipshop Holdings Ltd. (VIPS.US) reported on Tuesday its major operating metrics all fell in the second quarter, as it navigated a “challenging consumer environment.”

The company’s revenue fell 4.3% year-on-year during the quarter to 24.7 billion yuan ($3.67 million), while its gross merchandise value (GMV) fell 1.6% to 50.6 billion yuan. Its active customer base also dropped 2.8% to 42.3 million from 43.5 million a year earlier.

The company said it expects to report revenue of 20.3 billion yuan to 21.4 billion yuan in the third quarter, which would be flat to down 5% year-on-year.

The company’s net income jumped 189% to 4.3 billion yuan from 1.5 billion yuan a year earlier thanks to a big one-time investment gain related to the listing of its commercial real estate investment trust (REIT). Its non-GAAP net income fell to 392 million yuan from 2.1 billion yuan a year earlier due to a one-time withholding tax adjustment.

Vipshop’s stock fell 1.1% on Tuesday after the results announcement to close at $14.16. The stock is down 21.4% this year.

By Doug Young

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