Vipshop (NYSE:VIPS) Posts Earnings Results, Misses Expectations By $0.47 EPS

Vipshop (NYSE:VIPS) announced its quarterly earnings results on Tuesday. The technology company reported $0.12 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.59 by ($0.47), FiscalAI reports. Vipshop had a net margin of 7.08% and a return on equity of 16.90%. The firm had revenue of $3.64 billion for the quarter, compared to analyst estimates of $3.64 billion.

Here are the key takeaways from Vipshop’s conference call:

• Weak consumer demand weighed on second-quarter results, with revenue declining 4.3% year over year to RMB24.7 billion. Management said shoppers remain highly selective and expects full-year revenue to be slightly below 2025 levels, while third-quarter revenue is forecast to decline approximately 5% to 0%.
• Underlying profitability weakened despite stable gross margins: non-GAAP operating margin fell to 8.1% from 9.3%, and non-GAAP net income dropped to RMB392.2 million from RMB2.1 billion. Higher return rates increased fulfillment costs, while lower revenue created operating deleverage.
• Reported net income rose sharply to RMB4.3 billion, but this was primarily due to a RMB5.79 billion one-time gain from a commercial REIT listing. A separate RMB1.56 billion withholding-tax adjustment is expected to be settled in the third quarter; management said it was not a penalty and should have minimal impact on future operating margins.
• SVIP membership reached 10 million, with active SVIP customers increasing 8% year over year and contributing 54% of online spending. Management is relying on this higher-intent customer base, curated off-price merchandise, and AI-driven personalization to support retention and profitable growth.
• Shan Shan Outlet GMV grew more than 20% in the first half, and management expects similar growth in the second half, including at least double-digit same-store growth. Vipshop also approved a new $1 billion share-repurchase program and reiterated its goal of returning at least 75% of 2025 non-GAAP net income to shareholders.

Vipshop Trading Down 0.3%

Shares of VIPS stock opened at $14.28 on Wednesday. Vipshop has a 12 month low of $12.65 and a 12 month high of $21.08. The company has a market capitalization of $6.84 billion, a P/E ratio of 6.70, a P/E/G ratio of 1.45 and a beta of 0.67. The stock has a 50 day moving average of $14.22 and a two-hundred day moving average of $14.99.

Analyst Upgrades and Downgrades

A number of analysts have issued reports on the stock. UBS Group set a $18.50 target price on shares of Vipshop and gave the company a “buy” rating in a research note on Friday, May 22nd. Benchmark restated a “hold” rating on shares of Vipshop in a research note on Friday, May 22nd. Weiss Ratings restated a “hold (c-)” rating on shares of Vipshop in a report on Friday. Wall Street Zen lowered shares of Vipshop from a “buy” rating to a “hold” rating in a research note on Monday. Finally, Bank of America reiterated an “underperform” rating on shares of Vipshop in a report on Friday, May 29th. One research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $21.02.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. Arax Advisory Partners boosted its stake in Vipshop by 96.8% during the fourth quarter. Arax Advisory Partners now owns 1,407 shares of the technology company’s stock worth $25,000 after buying an additional 692 shares in the last quarter. Caitong International Asset Management Co. Ltd lifted its holdings in shares of Vipshop by 8,876.0% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 2,244 shares of the technology company’s stock worth $40,000 after acquiring an additional 2,219 shares during the period. Transamerica Financial Advisors LLC lifted its holdings in shares of Vipshop by 156.0% during the 4th quarter. Transamerica Financial Advisors LLC now owns 6,579 shares of the technology company’s stock worth $116,000 after acquiring an additional 4,009 shares during the period. Atlas Capital Advisors Inc. acquired a new stake in shares of Vipshop during the 4th quarter valued at about $132,000. Finally, Brooklyn Investment Group boosted its position in shares of Vipshop by 91.5% during the 3rd quarter. Brooklyn Investment Group now owns 11,777 shares of the technology company’s stock valued at $231,000 after acquiring an additional 5,626 shares in the last quarter. 48.82% of the stock is currently owned by institutional investors and hedge funds.

About Vipshop

Vipshop Holdings Limited (NYSE:VIPS) is a leading online discount retailer in China, offering high-quality branded products at competitive prices through a time-limited, flash-sales model. The company provides consumers with access to a rotating selection of merchandise, combining the excitement of limited-time offers with curated brand partnerships to drive customer engagement and loyalty.

Vipshop’s platform features a diverse range of product categories, including apparel, footwear, cosmetics, home furnishings, digital electronics and other lifestyle goods.