The 2022 Q1 Financial Report of Vipshop showed a slight decrease year-over-year, due to COVID-19 influence. The company was still growing positively and gradually under its business strategy plan.
The brand sale e-commerce platform Vipshop (VIPS: NYSE) releases the 2022 Q1 Financial Report on May 19, 2022. Vipshop announced net revenue of CNY 25.2 billion (USD 3.8 billion), down 11.3% year-over-year. The net profit attributable to its shareholders was CNY 1.1 billion (USD 163.9 million). Compared with last year’s CNY 1.5 billion (USD 223.5 million), it was slightly decreased in a reasonable range.
The non-GAAP net profit was CNY 1.4 billion (USD 208.6 million), down 17.6% year-over-year compared with CNY 1.7 billion (USD 253.4 million) in Q1 2021. The non-GAAP net margin reached 5.6%, which noted that Q1 2022 was the 38th consecutive quarter of profitability. Vipshop successfully maintained its net margin in the range above 5%, even though it was hugely influenced by the COVID-19.
Vipshop’s GMV was CNY 42.6 billion (USD 6.3 billion), down 7.6% from last year. The total number of orders was 166.4 million (USD 24.8 million), compared with 175.5 million (USD 26.2 million) from the past year. The slight decrease was due to the sluggish environment in China, and was in the relatively acceptable range. However, the contribution of core users to overall revenue continued to grow. They counted 38% towards the whole GMV. As the number of core users has continuously increased, and their contribution has correspondingly grown, the platform predicted positive growth in the future.
Vipshop’s CEO Mr. Chen mentioned that they would continue to focus on the development of core products. They would further quickly make modifications towards consumer demand and market trends. With the combination of its primary and new trends, Vipshops gave its shareholders confidence for its future.