Vipshop Holdings Ltd (ADR) (NYSE:VIPS) Reports Stellar Numbers
China’s leading online discount retailer, Vipshop Holdings Ltd – ADR (NYSE:VIPS) recently announced solid financial results for 3Q13 ended September 30, 2013. Commenting on the result the Chairman and Chief Executive Officer, Mr. Eric Shen said, “During the third quarter, our business continued to deliver solid financial and operational results. We are pleased with the growth in our customer base, brand partnerships as well as our warehouse capacity. Looking ahead, we will continue to focus on strengthening our market leadership and expertise in online discount retail.”
Vipshop Holdings Ltd (NYSE:VIPS) reported net revenues of $383.7 million in 3Q13, over 146% increase from revenue of $155.9 million reported in 3Q12. The growth was largely driven by increase in number of active customers as well as total orders which increased by 131.7% and 115.6%, respectively. Gross profit increased to $93 million for 3Q13 which compares to $34.8 million for 3Q12, suggesting over 167% year over year increase. Gross margin for 3Q13 increased to 24.2% compared to 22.3% in 3Q12. Company attributes this increase to its increased scale that helped bargain more effectively with its suppliers.
Vipshop Holdings Ltd (NYSE:VIPS) also reported 115.3% increase in its 3Q13 total operating expenses which were $83 million as compared to $38.6 million in 3Q12. Total operating expenses as a percentage of total net revenues decreased to 21.6% compared to 24.7% in 3Q12. Income from operations grew to $12 million in 3Q13 compared with loss of $3.3 million in 3Q12. Operating income margin for 3Q13 also increased to 3.1% compared to an operating loss margin of 2.1% in 3Q12.
Vipshop Holdings Ltd (NYSE:VIPS) reported net income and net income margin for 3Q13 at $12 million and 3.1%, respectively that compares with net loss of $1.5 million and net loss margin of 0.9%, respectively in 3Q12.
If we talk of growth story in Chinese online retail sector, the eyes will now surely be on E Commerce China Dangdang Inc (ADR) (NYSE:DANG)’s quarterly earnings announcement scheduled on Thursday, November 14, 2013 to see how effectively the company did its business amidst the Chinese recovery and growing online retail segment.