Chinese online discount retailer, VIPShop, recorded net revenue of US$3.6 billion for the first quarter of this year, down $200 million on the same period last year.
Vipshop’s net income was $273 million, with a gross profit of $838 million compared to $900 million year-on-year.
The company’s income from operations was $313.8 million with an operating margin of 8.7 per cent, down from 10 per cent during the same period last year.
The company expects its total net revenues to be between $3.5 billion and US$3.7 billion in the second quarter of the year, an approximate year-on-year decrease of up to 5 per cent.
It saw a decrease of 200,000 active customers, down from 43.1 million to 41.3 million year-on-year.
“We delivered solid profitability in the first quarter while continuously optimising our resource allocation to maximise growth opportunities,” said Mark Wang, CFO of VIPShop.
“Looking ahead, we remain focused on executing our strategic priorities to regain growth trajectory while investing with discipline and driving efficiency.”
