FollowOn Tuesday, the Vipshop Holdings Ltd, a Chinese online retailer, reports its third quarter revenue, beating Wall Street expectations, and offering its fourth quarter forecast that meets Wall Street estimates.
The Vipshop estimated its revenue for the fourth quarter of 1.2 billion dollars to 1.22 billion dollars. The results were higher compared to the 1.21 billion estimate of Wall Street.
On the other hand, shares of the Chinese discount retailer dropped 2% in the extended trading market, thus, trading 23.22 dollars per share.
During the third quarter, active customers of the company increased by 137% to 9.5 million dollars, far higher compared to the 4 million active customers last year, while the company’s overall orders increased by 118% to $25.5 million.
The firm’s operating expenses grew 23% from the 21.6% from the previous year as the total revenue percentage.
Donghao Yang, the company’s Chief Financial Officer, stated that the improved cost controls should strengthen its operational efficiency in the future, although Vipshop is planning on continuing mobile technology investments. Yang also said that the company is planning on pursuing investments in marketing, merchandising, and big data.
The company’s net income for the current third quarter increased to 27.7 million dollars, equivalent to 0.05 dollars per share, which were higher compared to the previous year’s 12 million or 0.02 dollars per share. Its adjusted income totaled to 0.08 dollars per share.
Vipshop revenue grew to 882.6 million dollars compared to the revenue of 383.7 million dollars last year.
Wall Street’s adjusted income was estimated at 863.12 million dollars or 0.07 dollars per share.
