- Vipshop’s forecast for net revenue in the third quarter of 2024 is between 20.5 billion yuan and 21.6 billion yuan, below the estimated 22.77 billion yuan.
- Adjusted earnings per American depositary receipts in the second quarter were 3.91 yuan, compared to 4.30 yuan the previous year, slightly above the estimate of 3.89 yuan.
- The number of active customers decreased by 3.1% year-over-year to 44.3 million, below the estimate of 44.42 million.
- Operating margin increased to 8.3% from 6.9% in the previous year.
- Adjusted operating margin improved to 9.5% from 8.2% year-over-year.
- Adjusted operating income rose by 12% year-over-year to 2.56 billion yuan, surpassing the estimate of 2.42 billion yuan.
- Net revenue for the second quarter was 26.88 billion yuan, a decrease of 3.6% year-over-year, but slightly above the estimate of 26.6 billion yuan.
- For the third quarter of 2024, Vipshop expects a year-over-year decrease in total net revenues of approximately 10% to 5%.
- Mr. Mark Wang, Vipshop’s CFO, noted that the company achieved solid profitability in Q2 despite ongoing pressure on topline growth.
- Analyst ratings include 20 buys, 9 holds, and 0 sells.
Vipshop Holdings on Smartkarma
Independent analysts on Smartkarma are optimistic about Vipshop Holdings. Wium Malan, CFA, in their report, “Vipshop: Net Cash at 40% of Market Cap, Now Paying Dividends and Buying Back Shares,” highlights the company’s strong balance sheet, buybacks, dividends, and attractive valuation. With net cash at around 40% of its market cap, Vipshop’s ongoing share repurchase program and dividend policy are seen as supportive factors. The company’s low PE ratio and expected earnings growth make it an appealing investment.
Another analyst, Ying Pan, shares a bullish outlook in the report titled “[Vipshop (VIPS US, BUY, TP US$20.4)TP Change]: Will Live for the Moment Consumption Persist in 2024?” Pan discusses Vipshop’s performance trends, with a focus on the themes of “live for the moment” consumption and consumption downgrade driving growth. By maintaining a BUY rating and raising the price target to US$20.4, Pan anticipates further positive momentum for Vipshop, highlighting the potential for continued growth in the coming year.
A look at Vipshop Holdings Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 4 | |
| Growth | 4 | |
| Resilience | 5 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 4.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
The long-term outlook for Vipshop Holdings looks promising based on the Smartkarma Smart Scores analysis. The company receives high marks in areas such as Value, Dividend, and Growth, with scores of 4 across the board. This indicates that Vipshop Holdings is seen favorably in terms of its valuation, dividend payouts, and potential for growth. Additionally, the company excels in Resilience, scoring a 5, highlighting its ability to weather economic uncertainties. While the Momentum score of 3 suggests some room for improvement in this aspect, overall, Vipshop Holdings appears to be well-positioned for sustained success.
Vipshop Holdings Ltd. is a retail company that focuses on offering branded products at discounted prices through online flash sales. With a strong emphasis on providing value to customers through limited-time discounts, the company has established itself as a key player in the online retail space. The Smartkarma Smart Scores for Vipshop Holdings underscore its solid fundamentals, indicating a company with strong potential for long-term growth and resilience in the face of market fluctuations.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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