Chinese retailer VIPshop has reported higher first-quarter profit, supported by strong apparel sales and improved margins during the Lunar New Year shopping season. 

The company posted total net revenue of RMB26.6 billion (US$3.9 billion) for the quarter ended March 31, up 1.2 per cent year on year. 

Active customers increased slightly to 41.7 million, while total orders grew 3.2 per cent to 172.6 million.

Chairman and CEO Eric Shen said the business benefited from strong apparel sales and increased spending by high-value customers during the Lunar New Year shopping season. 

“Our SVIP customer base achieved solid growth in both number and contribution, reflecting our long-standing appeal to high-value consumers,” Shen said.  

“Alongside these results, we have made steady progress across our merchandising portfolio, customer engagement, and AI integration, all of which are helping to further leverage our off-price retail model for growth. With continued dedication to the brand-discount space, we remain confident in our ability to deliver sustainable, profitable growth over the long term.”

Meanwhile, CFO Mark Wang added that consumer spending was concentrated in the first two months of the quarter due to the earlier timing of the Lunar New Year holiday, while profitability improved through a stronger product mix and disciplined cost management.

Looking ahead, VIPshop expects second-quarter revenue to range between RMB24.5 billion (US$3.6 billion) and RMB25.8 billion (US$3.79 billion), representing a year-over-year decrease of approximately 5 per cent to 0 per cent.

• Further reading: Falling profits, rising hopes: VIPshop eyes recovery after Q2 slide.