Chinese online discount retailer VIPshop Holdings has reported a decline in revenues and profits for the second quarter of fiscal year 2025, as the company pursues a long-term strategic realignment.
Total net revenues declined 4.1 per cent to RMB 25.8 billion (US$3.6 billion), compared to RMB 26.9 billion in Q2 FY24. Gross profit for the second quarter came in at RMB 6.1 billion (US$845.2 million), down slightly from RMB 6.3 billion in the same period last year.
Despite the dip in earnings, the company pointed to growing customer activity and signs of underlying resilience. Gross merchandise value (GMV), a key measure of total sales on its platform, rose 1.7 per cent year-over-year to RMB 51.4 billion (US$7.12 billion), suggesting improved engagement and transaction volume.
“Our business trajectory showed stabilisation as we acted swiftly to revive customer activity and sales momentum,” said Eric Shen, chairman and CEO of VIPshop.
“Anchored by our vision of discount retail for brands, we have implemented changes within our organisation to enhance the self-reinforcing flywheel across merchandising, operations and customer engagement.”
VIPshop also noted growth in its high-value customer base, led by double-digit increases in its Super VIP membership program. Apparel remained a key revenue driver, as the platform continues to focus on fashion and lifestyle categories to retain value-conscious shoppers.
The company’s ongoing platform optimisation efforts, including tighter inventory control, more targeted brand partnerships, and enhanced personalisation, are part of a broader effort to stand out in China’s competitive e-commerce sector.
While revenue pressure persists, management expressed cautious optimism that its recalibrated strategy is gaining traction. The stable GMV and expanding loyalty segment are viewed as early indicators of a turnaround.
“We delivered another quarter of healthy profitability, demonstrating our consistent financial discipline in prioritising growth initiatives and optimising resource allocation,” said Mark Wang, CFO of VIPshop
“Looking ahead, our consistent strategy and focused execution position us well to return to sustainable growth.”
