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Dec 31, 2024
Vipshop Q4 2024 Earnings Report
Vipshop reported lower revenue and net income in Q4 2024 compared to the prior year, despite maintaining solid profitability.
Key Takeaways
Vipshop's Q4 2024 revenue declined year-over-year, reflecting challenges in the retail market. However, the company maintained strong profitability, with net income exceeding $335 million. Operating margin contracted slightly due to higher marketing and administrative expenses.
Total revenue for Q4 2024 was $4.55 billion, a 4.2% decrease year-over-year.
Net income for Q4 2024 was $335.2 million, down from $407.4 million in Q4 2023.
Gross profit declined to $1.04 billion, with a gross margin of 23.0%.
Operating income dropped to $390.6 million, with an 8.6% operating margin.
Vipshop
Vipshop
Vipshop Revenue by Geographic Location
Revenue by Geographic Location
China Revenue
CapyFin.com Forward Guidance
Vipshop expects Q1 2025 revenue to be between RMB26.3 billion and RMB27.6 billion, representing a potential decline of up to 5% year-over-year.
Positive Outlook
- Company achieved strong profitability despite revenue decline.
- Super VIP customer segment continued to show strong spending momentum.
- Apparel categories experienced positive growth in Q4.
- Management remains confident in long-term growth trajectory.
- Commitment to shareholder returns through dividends and buybacks.
Challenges Ahead
- Total revenue declined year-over-year, indicating market challenges.
- Net income and operating margin contracted due to rising expenses.
- Active customer count fell compared to the prior year.
- Total orders placed declined, signaling weaker demand.
- Q1 2025 revenue guidance suggests a potential revenue contraction.