Post Earnings Coverage as Vipshop’s Quarterly Sales Soared 31%; Non-GAAP Jumped 28%

Upcoming AWS Coverage on QVC Group Post-Earnings Results

LONDON, UK / ACCESSWIRE / June 2, 2017 / Active Wall St. announces its post-earnings coverage on Vipshop Holdings Ltd (NYSE: VIPS). The Company reported its first quarter fiscal 2017 financial results on May 12, 2017. The Chinese online discount retailer surpassed top- and bottom-line expectations. Register with us now for your free membership at: http://www.activewallst.com/register/.

One of Vipshop Holdings’ competitors within the Catalog & Mail Order Houses space, QVC Group (NASDAQ: QVCA), reported on May 09, 2017, its financial results for Q1 2017. AWS will be initiating a research report on QVC Group in the coming days.

Today, AWS is promoting its earnings coverage on VIPS; touching on QVCA. Get our free coverage by signing up to: http://www.activewallst.com/register/.

Earnings Reviewed

For the quarter ended March 31, 2017, Vipshop’s total net revenue surged 31.1% to RMB15.95 billion (US$2.32 billion) compared to RMB12.17 billion in Q1 2016, primarily driven by the growth in the numbers of total active customers, repeat customers, and total orders. The Company’s revenue numbers surpassed analysts’ consensus of $2.26 billion.

Vipshop’s number of active customers for Q1 2017 increased by 32% to 26.0 million compared to 19.7 million in Q1 2016. The number of total orders had increased by 23% for the reported quarter to 72.1 million from 58.7 million in the prior year’s same period.

For Q1 2017, Vipshop’s gross profit increased by 25.0% to RMB3.69 billion (US$536.7 million) compared to RMB2.96 billion in Q1 2016. The Company’s gross margin for the reported quarter was 23.2% compared with 24.3% in the prior year’s same period. Vipshop expects its gross margin to remain stable in the short-term as it balances its promotional activities and sales with its marketing expenses.

During Q1 2017, Vipshop’s total operating expenses were RMB3.13 billion (US$454.4 million) compared with RMB2.39 billion in Q1 2016. As a percentage of total net revenue, total operating expenses decreased to 19.6% from 19.7% in the prior year’s same period. The Company’s fulfillment expenses for Q1 2017 were RMB1.44 billion (US$208.7 million) compared with RMB1.08 billion in the prior year’s same period, primarily reflecting an increase in sales volume and number of orders fulfilled. Vipshop’s marketing expenses for the reported quarter totaled RMB729.5 million (US$106.0 million) compared with RMB603.8 million in the prior year’s same period.

For Q1 2017, Vipshop’s Technology and content expenses were RMB419.5 million (US$61.0 million) compared with RMB326.7 million in Q1 2016, reflecting the Company’s continuing efforts to invest in human capital, advanced technologies such as data analytics as well as new business opportunities including the Internet finance business. The Company’s general and administrative expenses for the reported quarter were RMB542.2 million (US$78.8 million) compared with RMB382.3 million in the prior year’s same period.

During Q1 2017, Vipshop’s income from operations advanced 23.6% to RMB736.6 million (US$107.0 million) from RMB596.1 million in Q1 2016. The Company’s operating margin was 4.6% compared with 4.9% in the prior year’s same period. Vipshop’s non-GAAP income from operations which excludes share-based compensation expenses and amortization of intangible assets resulting from business acquisitions increased by 31.2% to RMB1.00 billion (US$145.9 million) from RMB765.2 million in the prior year’s comparable period. The Company’s non-GAAP operating income margin remained stable at 6.3% on a y-o-y basis.

For Q1 2017, net income attributable to Vipshop’s shareholders grew 16.3% to RMB551.9 million (US$80.2 million) from RMB474.6 million in Q1 2016. For the reported quarter, net income attributable to Vipshop’s shareholders per diluted ADS increased to RMB0.92 (US$0.13) from RMB0.80 in the prior year’s same period. Non-GAAP net income attributable to Vipshop’s shareholders, which excludes share-based compensation expenses, impairment loss of investments, and amortization of intangible assets resulting from business acquisitions and equity method investments, increased by 28.2% to RMB799.4 million (US$116.1 million) from RMB623.4 million in the prior year’s corresponding period. Non-GAAP net income attributable to Vipshop’s shareholders per diluted ADS increased to RMB1.31 (US$0.19) from RMB1.04 in the prior year’s same period. The Company’s earning numbers came in ahead of Wall Street’s expectations of US$0.16 per share.

Balance Sheet & Cash Flow

As of March 31, 2017, Vipshop had cash and cash equivalents of RMB4.43 billion (US$644.3 million) and held-to-maturity securities of RMB746.2 million (US$108.4 million). For the reported quarter, the Company’s operating cash was RMB0.74 billion and free cash flow was RMB428.81 million.

Outlook

For Q2 2017, Vipshop expects its total net revenue to be between RMB17.0 billion and RMB17.5 billion, representing y-o-y growth rate of approximately 26% to 30%. These forecasts reflect the Company’s current and preliminary view on the market and operational conditions, which is subject to change.

Stock Performance

At the closing bell, on Thursday, June 01, 2017, Vipshop Holdings’ stock jumped 6.39%, ending the trading session at $13.16. A total volume of 7.58 million shares were traded at the end of the day, which was higher than the 3-month average volume of 4.81 million shares. In the last six months and previous twelve months, shares of the Company have rallied 14.83% and 15.85%, respectively. Moreover, the stock surged 19.53% since the start of the year. The stock is trading at a PE ratio of 28.48 and currently has a market cap of $7.91 billion.

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