Vipshop Shares Down 23% After the Release of the Second Quarter Report
"Since May, the strong recovery of consumer demand for clothing has promoted the improvement of Vipshop's performance," said Shen Ya, the CEO of Vipshop.
On August 19, Vipshop disclosed its unaudited financial report for the second quarter of 2020. Vipshop saw revenue of CNY 24.10 billion, a year-on-year increase of 6.0%. GMV exceeded CNYY 38.40 billion, and active users increased by 17% year-on-year. The company successfully maintained positive net earnings for 31 consecutive quarters.
Vipshop recorded a gross profit of CNY 4.90 billion, and its gross profit margin declined from 22.40% to 20.50% due to the company's substantial investment in discounts and coupons in its promotional activities. According to general accounting standards, Vipshop's net profit attributable to shareholders was CNY 1.50 billion, an increase of 88.9% year-on-year.
The number of active users of Vipshop increased to 38.8 million, a year-on-year increaseof17%. Vipshop's total orders were 171 million, an increase of 15% from 148 million in the same period last year.
Yang Donghao, the chief financial officer of Vipshop, will leave for personal reasons in November 2020. The company's board of directors has appointed Yang Donghao as the new non-executive director, which will take effect at the same time as his position change. Currently, Vipshop has begun to look for a new chief financial officer.
For the third quarter of 2020, the company expects its total net income to be between CNY 20.60 billion and CNY 21.60 billion. Vipshop said that the forecast reflects the company's preliminary views on the current market and operating conditions and may change.