Boston, MA 08/15/2014 (wallstreetpr) – Vipshop Holdings Ltd – ADR (NYSE:VIPS) posted the strong set of numbers in its second-quarter results. The enhanced profit was led by an impressive rise in the number of active customers and orders. The results were better than the street’s expectation, but still the stock took a hit after the results. The outlook for the third quarter revenues remains strong.
The figures
The Chinese online discount retailer posted the profit of $26.4 million as compared to $9.0 million a year ago. It accounts for the profit of $0.44 per ADS as against $0.16 per ADS last year. The adjusted earnings came at $0.72 per ADS as compared to $0.20 per ADS year ago. It was better than the analysts’ expectations of $0.64 per share in second-quarter. It was excluding the special items. The revenues of Vipshop Holdings Ltd – ADR (NYSE:VIPS) came higher at $829.4 million as compared to $351.1 million in the prior-year quarter. It was better than the consensus estimates of $791.55 million.
The rise in orders
The higher revenue was a result of the increased number of active clients. The active users rose 167.9% to 9.3 million in the second quarter. The total orders shoot up to 26.3 million, up 138.4% as compared to prior-year quarter. The gross margin came higher at 24.8% as compared to 23.5% last year. Vipshop Holdings Ltd – ADR (NYSE:VIPS) released the revenue guidance for the third quarter. It expects the revenues to come in the range of $850 million to $860 million. It accounts for a yearly growth of 122% to 124%. However, analysts expect the third quarter revenue to show the growth of 115%. It is expected to come at $824.85 million.
The reason for the fall
Despite the good results, the stocks took a hit as there us news that China State Administration of Taxation is considering for an online sales tax and can be introduced before 2015. Vipshop management expects to enhance its market share and business in organic terms and through acquisitions in the coming time.
