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Vipshop Holdings Limited (VIPS)
NYSE:VIPS
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Vipshop
(NYSE:VIPS)
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Rating:79Outperform
Price Target:
$19.50
▲(3.83% Upside)
Vipshop's overall stock score reflects strong financial performance and attractive valuation, supported by positive technical indicators. However, recent declines in revenue and income, along with increased operating expenses, present challenges. The company's strategic initiatives and commitment to shareholder returns provide a balanced outlook.
Positive Factors
Financial Stability
The company's low leverage and strong equity position indicate financial stability, providing a solid foundation for future growth and resilience against economic fluctuations.
Customer Growth
The recovery in active customers and growth in Super VIP memberships suggest effective customer engagement strategies, which are crucial for sustaining revenue and market position.
Brand Expansion
Expanding brand partnerships and focusing on customized products enhance Vipshop's competitive edge, attracting diverse consumer segments and boosting sales potential.
Negative Factors
Revenue Decline
A decline in net revenues indicates challenges in maintaining sales momentum, which could impact profitability and market share if not addressed.
Operating Income Decrease
The decrease in operating income suggests rising costs or inefficiencies, potentially affecting the company's ability to invest in growth and innovation.
Increased Operating Expenses
Rising operating expenses, particularly in general and administrative areas, may pressure margins and reduce financial flexibility, hindering long-term profitability.
Vipshop (VIPS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.31B
Dividend Yield2.54%
Average Volume (3M)2.58M
Price to Earnings (P/E)10.0
Beta (1Y)0.78
Revenue Growth-5.24%
EPS Growth-12.89%
CountryUS
Employees14,966
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.57
Shares Outstanding437,081,500
10 Day Avg. Volume2,503,138
30 Day Avg. Volume2,576,390
Financial Highlights & Ratios
PEG Ratio5.71
Price to Book (P/B)1.30
Price to Sales (P/S)0.48
P/FCF Ratio9.37
Enterprise Value/Market Cap0.55
Enterprise Value/Revenue0.05
Enterprise Value/Gross Profit0.20
Enterprise Value/Ebitda0.53
Forecast
1Y Price Target
$18.45Price Target Upside-1.76% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering7
Vipshop Business Overview & Revenue Model
Company DescriptionVipshop Holdings Limited operates online platforms for various brands in the People's Republic of China. It operates in Vip.com, Shan Shan Outlets, and Others segments. The company offers women's apparel, such as casual wear, jeans, dresses, outerwear, lingerie, pajamas, and maternity clothes; men's apparel comprising casual and smart-casual T-shirts, polo shirts, jackets, pants, and underwear; and skin care and cosmetic products, including cleansers, lotions, face and body creams, face masks, sunscreen, foundations, lipsticks, eye shadows, and other cosmetics-related items. It also provides shoes and bags, which comprises casual and formal shoes, purses, satchels, luggage, duffel bags, and wallets; handbags; apparel, gears and accessories, furnishings and decor, toys, and games for boys, girls, infants, and toddlers; sportswear, sports gear, and footwear for various sporting activities; home furnishings, such as bed and bath products, home decor, kitchen and tabletop items, and home appliances; and consumer electronic products. In addition, the company offers food and snacks, beverages, fresh produce, and pet goods; beauty products; and internet finance services, including consumer and supplier financing, and microcredit. Vipshop Holdings Limited provides its branded products through its vip.com and vipshop.com online platforms, as well as through its internet website and cellular phone application. Further, it offers warehousing, logistics, product procurement, research and development, technology development, and consulting services; software development and information technology support solutions; and supply chain services. Vipshop Holdings Limited was founded in 2008 and is headquartered in Guangzhou, the People's Republic of China.
How the Company Makes MoneyVipshop generates revenue primarily through its online sales of discounted products. The company employs a flash sales model, allowing it to sell products at reduced prices for a limited period, which encourages quick purchasing decisions among consumers. Key revenue streams include direct sales of merchandise, where it buys inventory from brand partners at wholesale prices and sells them at a markup during flash sales. Additionally, Vipshop earns revenue through logistics and fulfillment services, which are crucial for its operational efficiency, and by leveraging its platform for advertising and promotional partnerships with brands. Significant partnerships with well-known domestic and international brands enhance its product offerings and attract a larger customer base, contributing to its earnings.
Vipshop Earnings Call Summary
Earnings Call Date:Aug 14, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 13, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture. While there is positive momentum in customer growth and strategic initiatives in merchandising and brand expansion, financial metrics such as net revenue and income have declined compared to the previous year. The company is making efforts to stabilize and return to growth through customer engagement and shareholder returns, but challenges remain in reversing the decline in financial performance.Q2-2025 Updates
Positive Updates
Growth in Active Customers and Super VIP Membership
Total active customers showed clear signs of recovery, with Super VIP membership sustaining double-digit growth. Active SVIP customers increased by 15% year-over-year, contributing 52% of online spending.
Merchandising Strategy and Brand Expansion
The company added close to 500 brands to its platform, with the 'Made for Vipshop' line contributing significantly to apparel sales. Customized products accounted for more than 20% of sales for many brands.
Financial Health and Shareholder Returns
The company distributed over USD 640 million in shareholder returns through dividends and share buybacks, and is on track to deliver no less than 75% of RMB 9 billion in full-year 2024 non-GAAP net income.
Negative Updates
Decline in Total Net Revenues
Total net revenues for Q2 2025 were RMB 25.8 billion, down from RMB 26.9 billion in the prior year period, representing a year-over-year decline.
Decrease in Operating Income and Net Income
Income from operations was RMB 1.7 billion compared with RMB 2.2 billion in the prior year period. Net income attributable to Vipshop shareholders was RMB 1.5 billion compared with RMB 1.9 billion in the prior year period.
Increased Operating Expenses
Operating expenses increased by 6.3% year-over-year to RMB 4.6 billion, with a notable increase in general and administrative expenses due to higher share-based compensation.
Company Guidance
During Vipshop Holdings Limited's Second Quarter 2025 Earnings Conference Call, the company provided guidance that reflects a cautious yet optimistic outlook. They anticipate third-quarter 2025 total net revenues to range between RMB 20.7 billion to RMB 21.7 billion, marking a potential year-over-year growth of 0% to 5%. The guidance is based on observed recovery in total active customers, particularly with new customer growth, and improvements in merchandising strategies. In the second quarter, Vipshop reported total net revenues of RMB 25.8 billion, down from RMB 26.9 billion the previous year. Gross profit was RMB 6.1 billion, and the gross margin was slightly down at 23.5% compared to 23.6% a year earlier. Operating expenses rose by 6.3% to RMB 4.6 billion, while fulfillment and marketing expenses saw slight declines. Despite these challenges, the company is committed to returning no less than 75% of its full-year 2024 non-GAAP net income to shareholders, reflecting confidence in its growth prospects and fundamental value.Vipshop Financial Statement Overview
Summary
Vipshop demonstrates solid financial health with strong profitability and a robust balance sheet, indicative of prudent financial management. While past cash flows have been strong, recent operational cash flow issues need monitoring. Overall, the company is well-positioned for continued growth in the retail sector.Income Statement
The company exhibits strong profitability with a high gross profit margin and consistent net profit margins over the years. Revenue has shown fluctuations but remains robust, indicating resilience in a competitive retail sector. EBIT and EBITDA margins are healthy, reflecting efficient operational management.82
Very Positive
Balance Sheet
Vipshop maintains a solid balance sheet with a low debt-to-equity ratio and strong equity ratio, showcasing financial stability and low leverage. The return on equity is impressive, reflecting efficient use of equity capital. The company's assets and equity have been growing, supporting future expansion.88
Very Positive
Cash Flow
Cash flow analysis shows a volatile but positive free cash flow trend, indicating good cash generation capability. However, recent operating cash flow dropped to zero, raising concerns about operational cash sustainability. Nonetheless, previous years show strong free cash flow to net income ratios, highlighting effective cash management.75
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 107.04B | 108.42B | 112.86B | 103.15B | 117.06B | 101.86B |
| Gross Profit | 25.01B | 25.47B | 25.72B | 21.62B | 23.11B | 21.29B |
| EBITDA | 9.63B | 10.41B | 11.53B | 6.96B | 6.25B | 6.31B |
| Net Income | 7.37B | 7.74B | 8.12B | 6.30B | 4.68B | 5.91B |
Balance Sheet | ||||||
| Total Assets | 74.57B | 74.94B | 72.32B | 65.48B | 62.29B | 58.94B |
| Cash, Cash Equivalents and Short-Term Investments | 28.56B | 28.22B | 27.90B | 23.53B | 21.68B | 19.32B |
| Total Debt | 5.09B | 3.05B | 2.34B | 3.66B | 3.21B | 2.70B |
| Total Liabilities | 32.76B | 33.39B | 33.76B | 31.40B | 28.46B | 29.56B |
| Stockholders Equity | 40.21B | 39.97B | 36.96B | 32.75B | 32.63B | 28.50B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 5.57B | 9.18B | 7.42B | 3.17B | 9.55B |
| Operating Cash Flow | 0.00 | 9.13B | 14.41B | 10.52B | 6.74B | 11.82B |
| Investing Cash Flow | 0.00 | -3.57B | -5.16B | 1.05B | -2.33B | -6.70B |
| Financing Cash Flow | 0.00 | -4.97B | -6.15B | -5.57B | -58.79M | -20.84M |
Vipshop Technical Analysis
Positive
18.78
Price Trends
16.38
Positive
15.46
Positive
14.72
Positive
Market Momentum
0.62
Negative
80.24
Negative
90.41
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VIPS, the sentiment is Positive. The current price of 18.78 is above the 20-day moving average (MA) of 17.39, above the 50-day MA of 16.38, and above the 200-day MA of 14.72, indicating a bullish trend. The MACD of 0.62 indicates Negative momentum. The RSI at 80.24 is Negative, neither overbought nor oversold. The STOCH value of 90.41 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VIPS.
Vipshop Risk Analysis
Vipshop disclosed 81 risk factors in its most recent earnings report. Vipshop reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 2 New Risks
1.
You must not rely on our dividend policy for return on your investment in our ADSs because the amount, timing, and whether or not we distribute dividends at all is entirely at the discretion of our board of directors. Q4, 2023
2.
There can be no assurance that we will maintain profitable or positive cash flow from operating activities in the future. Q4, 2023
Vipshop Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $9.31B | 9.96 | 17.79% | 2.54% | -5.24% | -12.89% | |
77 Outperform | 7.69B | 23.69 | 25.38% | 2.49% | 10.93% | -10.83% | |
68 Neutral | 15.85B | 108.41 | 38.76% | ― | 9.04% | -56.79% | |
63 Neutral | 1.45B | -11.69 | -114.16% | ― | -13.22% | 0.00% | |
59 Neutral | 6.01B | 51.86 | -14.58% | ― | 2.38% | -38.88% | |
57 Neutral | 11.20B | -36.84 | 17.86% | ― | 0.87% | 54.67% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
Performance Comparison
VIPS
Vipshop
18.78
5.89
45.69%
W
Wayfair
88.39
34.06
62.69%
ETSY
Etsy
64.85
10.78
19.94%
JMIA
Jumia Technologies AG
11.92
7.20
152.54%
CHWY
Chewy
38.42
7.32
23.54%
MNSO
MINISO Group Holding
24.77
8.63
53.47%
Vipshop Corporate Events
Vipshop Reports Q2 2025 Financial Results with GMV Growth
Aug 14, 2025
On August 14, 2025, Vipshop Holdings Limited reported its unaudited financial results for the second quarter of 2025, ending June 30. The company experienced a slight decline in total net revenues to RMB25.8 billion compared to the previous year. However, the gross merchandise value (GMV) saw a year-over-year increase of 1.7%, reaching RMB51.4 billion. Despite a decrease in net income and active customers, Vipshop maintained healthy profitability and continues to focus on growth initiatives and resource optimization. The company is confident in its strategy to return to sustainable growth, supported by strong performance in apparel categories and growth in Super VIP memberships.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.