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China’s online discount retailer Vipshop sees its profit surge 65%

Written by Song Jingli Published on   1 min read

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Focus on the apparel category is the main factor for profitability improvement.

Chinese online discount e-commerce site for brands reported Wednesday that it booked RMB 21.3 billion (USD 3.2 billion) in revenue in the first quarter of 2019, increasing by 7.3% year-on-year.

The company, which was founded in August 2008, said its active users in the quarter increased 14% year-on-year to 29.7 million. Its net income grew 64.7% year-on-year to RMB 872.3 million (USD 130 million).

Donghao Yang, the chief financial officer of Vipshop said the company’s profitability has started to improve as a result of an emphasis on the apparel category, the shift of low-margin products to the marketplace platform, and focus on the discount retail model.

However, the company said it expects its revenue to be between RMB 20.7 billion and RMB 21.7 billion in the coming quarter, which means close to zero growth.

Contact the writer at [email protected]

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