Notable Stock to Watch: Vipshop Holdings Limited (NYSE:VIPS) plunges -5.09% after reporting earnings results

Vipshop Holdings Limited (NYSE:VIPS) changed -5.09% to recent value of $7.27. The stock transacted 8231870 shares during most recent day however it has an average volume of 8224.3K shares. It spotted trading -42.30% off 52-week high price. On the other end, the stock has been noted 68.87% away from the low price over the last 52-weeks.

Vipshop Holdings Limited (NYSE: VIPS) announced its unaudited financial results for the first quarter ended March 31, 2019.

First Quarter 2019 Highlights

Total net revenue for the first quarter of 2019 increased by 7.3% year over year to RMB21.3 billion (US$3.2 billion) from RMB19.9 billion in the prior year period.

GMV for the first quarter of 2019 increased by 11% year over year to RMB33.8 billion from RMB30.5 billion in the prior year period.

Gross profit for the first quarter of 2019 increased by 8.7% year over year to RMB4.4 billion (US$649.1 million) from RMB4.0 billion in the prior year period.

Net income attributable to Vipshop’s shareholders for the first quarter of 2019 increased by 64.7% year over year to RMB872.3 million (US$130.0 million) from RMB529.7 million in the prior year period.

Non-GAAP net income attributable to Vipshop’s shareholders for the first quarter of 2019 increased by 12.2% year over year to RMB816.3 million (US$121.6 million) from RMB727.7 million in the prior year period.

The number of active customers for the first quarter of 2019 increased by 14% year over year to 29.7 million from 26.0 million in the prior year period.

Total orders for the first quarter of 2019 increased by 29% year over year to 116.5 million from 90.2 million in the prior year period.

Mr. Eric Shen, Chairman and Chief Executive Officer of Vipshop, stated, “We delivered solid operational and financial results in the first quarter of 2019. During this quarter, our total active customers grew by 14% year over year, which was the result of enhanced loyalty from existing customers and accelerated growth in the number of new customers. We accomplished these solid results through our focus back on the discount retail channel and the successful execution of our merchandising strategy. Going forward, we will continue to expand our market share in the discount apparel segment, further strengthening our leading position in China.”

Mr. Donghao Yang, Chief Financial Officer of Vipshop, further commented, “In the first quarter of 2019, we delivered robust financial results backed by healthy topline growth and improved year-over-year net margin. Our profitability has started to improve as a result of our emphasis on the apparel category, the shift of low-margin products to the marketplace platform, and our focus on the discount retail model. We are deeply devoted to driving improved shareholder return with sustainable growth in both top-line and bottom-line.”

 VIPS has a gross margin of 20.20% and an operating margin of 1.90% while its profit margin remained 2.50% for the last 12 months. Its earnings per share (EPS) expected to touch remained -2.00% for this year while earning per share for the next 5-years is expected to reach at 0.14%.

 The company has 683.13M of outstanding shares and 492.32M shares were floated in the market. According to the most recent quarter its current ratio was 1.1 that represents company’s ability to meet its current financial obligations. The price moved ahead of -13.06% from the mean of 20 days, -9.97% from mean of 50 days SMA and performed 7.53% from mean of 200 days price. Company’s performance for the week was -12.73%, -9.58% for month and YTD performance remained 33.15%.

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