GUANGZHOU, China - Vipshop (NYSE:VIPS) Holdings Limited (NYSE: VIPS), a prominent online discount retailer for brands in China, reported a significant earnings beat for the fourth quarter of 2023, sending its shares soaring by 15.6% in market response.
The company posted an adjusted EPS of RMB5.79, surpassing the analyst estimate of RMB5.03 by RMB0.76. Revenue for the quarter also exceeded expectations, coming in at RMB34.7 billion against the consensus estimate of RMB33.33 billion.
This performance represents a substantial 9.2% increase in revenue compared to the same quarter last year, highlighting Vipshop's continued growth trajectory. The company's success has been attributed to a rise in active customers and increased spending on discretionary categories, signaling a recovery in consumer consumption.
For the first quarter of 2024, Vipshop anticipates revenue to be between RMB27.5 billion and RMB28.9 billion. This guidance range's midpoint, RMB28.2 billion, is slightly below the analyst consensus of RMB28.5 billion, suggesting a cautious outlook for the upcoming quarter.
Chairman and CEO Eric Shen commented on the results, "We rounded off 2023 with a set of results well beyond our expectations, as we successfully executed our merchandising strategy to seize opportunities in value-based spending amid strong seasonal demand." He attributed the company's growth to its focus on discount retail for brands, which has increased customer loyalty and active Super VIP members.
CFO Mark Wang expressed confidence in the company's sustainable business model and its potential for long-term growth. He also highlighted the approval of an annual cash dividend policy by the board of directors, reflecting the company's commitment to shareholder value creation.
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