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Vipshop Holdings Limited (VIPS)
NYSE:VIPS
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Vipshop
(NYSE:VIPS)
Rating:79Outperform
Price Target:
$19.50
▲(13.77% Upside)
Positive Factors
Revenue Growth Potential
The guidance for third-quarter revenue suggests a potential growth of up to 5% year-over-year, exceeding Bloomberg consensus.
Share Repurchase
Vipshop repurchased US$349.8 million of shares in the second quarter under its current US$1 billion program.
User and Apparel Trends
Improved user and apparel GMV trends in 2Q are expected to continue to 3Q, driving net revenues back to YoY growth.
Negative Factors
Consumer Demand
Demand for discretionary items like apparel is expected to remain a lower priority and highly dependent on weather and promotional seasons.
Industry Competition
2025-26e net revenue and non-GAAP net profits are lowered by 2% to reflect continued pressure in standardized products' sales due to fierce industry competition.
Revenue Decline
Total revenue was at the low end of guidance, declining by 4% year-over-year.
Vipshop (VIPS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.37B
Dividend Yield2.8%
Average Volume (3M)2.39M
Price to Earnings (P/E)9.2
Beta (1Y)0.79
Revenue Growth-5.24%
EPS Growth-12.89%
CountryUS
Employees14,966
SectorConsumer Cyclical
Sector Strength83
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.57
Shares Outstanding437,081,500
10 Day Avg. Volume2,096,524
30 Day Avg. Volume2,392,857
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.61
Enterprise Value/Revenue0.05
Enterprise Value/Gross Profit0.20
Enterprise Value/Ebitda0.53
Forecast
1Y Price Target
$18.60Price Target Upside8.52% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
Vipshop Business Overview & Revenue Model
Company DescriptionVipshop Holdings Limited (VIPS) is a leading Chinese online discount retailer, primarily focused on offering a wide range of apparel, shoes, accessories, and home goods. Established in 2008, the company operates in the e-commerce sector, utilizing a flash sales model that provides limited-time discounts on branded products. Vipshop's platform caters to price-sensitive consumers looking for high-quality merchandise at competitive prices, distinguishing itself through its unique sales approach and partnerships with various brands.
How the Company Makes MoneyVipshop generates revenue primarily through its online sales of discounted products. The company employs a flash sales model, allowing it to sell products at reduced prices for a limited period, which encourages quick purchasing decisions among consumers. Key revenue streams include direct sales of merchandise, where it buys inventory from brand partners at wholesale prices and sells them at a markup during flash sales. Additionally, Vipshop earns revenue through logistics and fulfillment services, which are crucial for its operational efficiency, and by leveraging its platform for advertising and promotional partnerships with brands. Significant partnerships with well-known domestic and international brands enhance its product offerings and attract a larger customer base, contributing to its earnings.
Vipshop Earnings Call Summary
Earnings Call Date:Aug 14, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 13, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture. While there is positive momentum in customer growth and strategic initiatives in merchandising and brand expansion, financial metrics such as net revenue and income have declined compared to the previous year. The company is making efforts to stabilize and return to growth through customer engagement and shareholder returns, but challenges remain in reversing the decline in financial performance.Q2-2025 Updates
Positive Updates
Growth in Active Customers and Super VIP Membership
Total active customers showed clear signs of recovery, with Super VIP membership sustaining double-digit growth. Active SVIP customers increased by 15% year-over-year, contributing 52% of online spending.
Merchandising Strategy and Brand Expansion
The company added close to 500 brands to its platform, with the 'Made for Vipshop' line contributing significantly to apparel sales. Customized products accounted for more than 20% of sales for many brands.
Financial Health and Shareholder Returns
The company distributed over USD 640 million in shareholder returns through dividends and share buybacks, and is on track to deliver no less than 75% of RMB 9 billion in full-year 2024 non-GAAP net income.
Negative Updates
Decline in Total Net Revenues
Total net revenues for Q2 2025 were RMB 25.8 billion, down from RMB 26.9 billion in the prior year period, representing a year-over-year decline.
Decrease in Operating Income and Net Income
Income from operations was RMB 1.7 billion compared with RMB 2.2 billion in the prior year period. Net income attributable to Vipshop shareholders was RMB 1.5 billion compared with RMB 1.9 billion in the prior year period.
Increased Operating Expenses
Operating expenses increased by 6.3% year-over-year to RMB 4.6 billion, with a notable increase in general and administrative expenses due to higher share-based compensation.
Company Guidance
During Vipshop Holdings Limited's Second Quarter 2025 Earnings Conference Call, the company provided guidance that reflects a cautious yet optimistic outlook. They anticipate third-quarter 2025 total net revenues to range between RMB 20.7 billion to RMB 21.7 billion, marking a potential year-over-year growth of 0% to 5%. The guidance is based on observed recovery in total active customers, particularly with new customer growth, and improvements in merchandising strategies. In the second quarter, Vipshop reported total net revenues of RMB 25.8 billion, down from RMB 26.9 billion the previous year. Gross profit was RMB 6.1 billion, and the gross margin was slightly down at 23.5% compared to 23.6% a year earlier. Operating expenses rose by 6.3% to RMB 4.6 billion, while fulfillment and marketing expenses saw slight declines. Despite these challenges, the company is committed to returning no less than 75% of its full-year 2024 non-GAAP net income to shareholders, reflecting confidence in its growth prospects and fundamental value.Vipshop Financial Statement Overview
Summary
Vipshop demonstrates solid financial health with strong profitability and a robust balance sheet, indicative of prudent financial management. While past cash flows have been strong, recent operational cash flow issues need monitoring. Overall, the company is well-positioned for continued growth in the retail sector.Income Statement
The company exhibits strong profitability with a high gross profit margin and consistent net profit margins over the years. Revenue has shown fluctuations but remains robust, indicating resilience in a competitive retail sector. EBIT and EBITDA margins are healthy, reflecting efficient operational management.82
Very Positive
Balance Sheet
Vipshop maintains a solid balance sheet with a low debt-to-equity ratio and strong equity ratio, showcasing financial stability and low leverage. The return on equity is impressive, reflecting efficient use of equity capital. The company's assets and equity have been growing, supporting future expansion.88
Very Positive
Cash Flow
Cash flow analysis shows a volatile but positive free cash flow trend, indicating good cash generation capability. However, recent operating cash flow dropped to zero, raising concerns about operational cash sustainability. Nonetheless, previous years show strong free cash flow to net income ratios, highlighting effective cash management.75
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 107.04B | 108.42B | 112.86B | 103.15B | 117.06B | 101.86B |
| Gross Profit | 25.01B | 25.47B | 25.72B | 21.62B | 23.11B | 21.29B |
| EBITDA | 9.63B | 10.41B | 11.53B | 6.96B | 6.25B | 6.31B |
| Net Income | 7.37B | 7.74B | 8.12B | 6.30B | 4.68B | 5.91B |
Balance Sheet | ||||||
| Total Assets | 74.57B | 74.94B | 72.32B | 65.48B | 62.29B | 58.94B |
| Cash, Cash Equivalents and Short-Term Investments | 28.56B | 28.22B | 27.90B | 23.53B | 21.68B | 19.32B |
| Total Debt | 5.09B | 3.05B | 2.34B | 3.66B | 3.21B | 2.70B |
| Total Liabilities | 32.76B | 33.39B | 33.76B | 31.40B | 28.46B | 29.56B |
| Stockholders Equity | 40.21B | 39.97B | 36.96B | 32.75B | 32.63B | 28.50B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 5.57B | 9.18B | 7.42B | 3.17B | 9.55B |
| Operating Cash Flow | 0.00 | 9.13B | 14.41B | 10.52B | 6.74B | 11.82B |
| Investing Cash Flow | 0.00 | -3.57B | -5.16B | 1.05B | -2.33B | -6.70B |
| Financing Cash Flow | 0.00 | -4.97B | -6.15B | -5.57B | -58.79M | -20.84M |
Vipshop Technical Analysis
Positive
17.14
Price Trends
15.88
Positive
15.02
Positive
14.52
Positive
Market Momentum
0.35
Positive
62.78
Neutral
55.42
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VIPS, the sentiment is Positive. The current price of 17.14 is above the 20-day moving average (MA) of 16.67, above the 50-day MA of 15.88, and above the 200-day MA of 14.52, indicating a bullish trend. The MACD of 0.35 indicates Positive momentum. The RSI at 62.78 is Neutral, neither overbought nor oversold. The STOCH value of 55.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VIPS.
Vipshop Risk Analysis
Vipshop disclosed 81 risk factors in its most recent earnings report. Vipshop reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 2 New Risks
1.
You must not rely on our dividend policy for return on your investment in our ADSs because the amount, timing, and whether or not we distribute dividends at all is entirely at the discretion of our board of directors. Q4, 2023
2.
There can be no assurance that we will maintain profitable or positive cash flow from operating activities in the future. Q4, 2023
Vipshop Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $8.37B | 9.21 | 17.79% | 2.80% | -5.24% | -12.89% | |
77 Outperform | $7.37B | 23.07 | 22.92% | 2.51% | 10.93% | -10.83% | |
72 Outperform | $17.14B | 47.41 | 76.24% | ― | 7.64% | 369.79% | |
63 Neutral | $1.09B | ― | -176.83% | ― | -13.22% | ― | |
61 Neutral | $17.99B | 12.87 | -3.58% | 2.97% | 1.27% | -14.28% | |
57 Neutral | $10.74B | ― | 17.86% | ― | 0.87% | 54.67% | |
57 Neutral | $5.36B | 43.23 | -39.97% | ― | 2.38% | -38.88% |
* Consumer Cyclical Sector Average
Performance Comparison
VIPS
Vipshop
17.14
4.85
39.46%
W
Wayfair
89.61
46.43
107.53%
ETSY
Etsy
54.06
1.71
3.27%
JMIA
Jumia Technologies AG
8.86
4.50
103.21%
CHWY
Chewy
42.33
15.95
60.46%
MNSO
MINISO Group Holding
24.52
8.73
55.29%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.