Boston, MA 03/06/2014 (wallstreetpr) – Vipshop Holdings Ltd- ADR (NYSE:VIPS) released its fourth quarter earnings that were well above the consensus estimates which have consequently made the company’s stock to be on a rally in the market. Analysts at Daiwa Capital have already weighed into the company’s result increasing their earnings per share estimates for that current fiscal year from 16% to 18%
Vipshop encouraging results
Vipshop Holdings Ltd- ADR (NYSE:VIPS) fourth quarter earnings report clearly showed how the company can produce robust top line growth while also enhancing margin expansions. Vipshop continues to command a strong bargaining power over other brand vendors which should act as the key driving force for its growth in the current fiscal year.
Despite increased competition in China markets, Vipshop Holdings Ltd- ADR (NYSE:VIPS) continues to record improved sales with more than 70% of its customers always placing orders more than once. Analysts are of the strong opinion that the company market share should increase even further in the coming quarters. Vipshop mobile sales made up more than 23% of the company’s total sales. Vipshop management has already stated that it is working with Tencent’s to increase even further its mobile presence as it plans to increase its sales.
Vipshop profitability expected to grow
Vipshop Holdings Ltd- ADR (NYSE:VIPS) was able to increase its number of brand vendors from 3,824 in the third quarter to 4,100 as of close of business in December clearly showing how it has grown to become a preferred discount channel store over other stores. Analysts think the company’s gross margins will grow from 24% registered in the previous year to 25% as a result of its strong bargaining power.
Vipshop Holdings Ltd- ADR (NYSE:VIPS) is currently increasing its warehouse capacity to try and improve its fulfillment and logistics capabilities that’s should cause a surge in its operating margins from 3.2% to 7.5% as of 2016. The company also continues to massively benefit from its high levels of leverage.
Vipshop Holdings Ltd- ADR (NYSE:VIPS) was up in Wednesday trading session closing at highs of $171.48 after moving up by 1.34%
