Vipshop (VIPS, Financial) released its financial results for the third quarter ending September 30, 2024. The company's net revenue was 20.7 billion yuan (approximately $2.9 billion), down from 22.8 billion yuan in the previous year. Net profit attributable to Vipshop shareholders was 1 billion yuan, a decrease from 1.2 billion yuan in the previous year. On a non-GAAP basis, net profit was 1.3 billion yuan, compared to 1.8 billion yuan a year ago.
During the quarter, the gross merchandise volume (GMV) was 40.1 billion yuan, down from 42.5 billion yuan in 2023. The gross profit amounted to 5 billion yuan (around $706 million), with a gross margin of 24%, slightly up from 23.6% the year prior. Operating expenses totaled 3.8 billion yuan ($536 million), a 6.1% decline from the previous year, and accounted for 18.2% of net revenue, compared to 17.6% previously.
Operating profit reached 1.3 billion yuan ($189 million), down from 1.5 billion yuan, with an operating margin of 6.4%, compared to 6.7% last year. Non-GAAP operating profit stood at 1.7 billion yuan ($242 million), compared to 2.1 billion yuan the previous year, achieving an 8.2% operating margin, down from 9.1%.
The diluted earnings per American Depositary Share (ADS) were 1.97 yuan ($0.28), compared to 2.19 yuan. On a non-GAAP basis, earnings per ADS were 2.47 yuan ($0.35), compared to 3.33 yuan the previous year.
As of September 30, 2024, Vipshop held 22.5 billion yuan ($3.2 billion) in cash, cash equivalents, and restricted cash, along with 1.6 billion yuan ($222 million) in short-term investments. Net cash from operating activities was 508.9 million yuan ($72.5 million) for the quarter.
Vipshop's active user base was 39.6 million, a decrease from 42.3 million last year, and total orders were 163.9 million compared to 179.9 million previously.
In the third quarter, Vipshop repurchased $275 million of its ADS under the $1 billion stock repurchase program, leaving $55.3 million unused by the quarter's end. The company projects its net revenue for the fourth quarter of 2024 to be between 31.2 billion yuan and 32.9 billion yuan, reflecting a year-over-year decline of approximately 10% to 5%.
