Vipshop Holdings Limited reported fourth‑quarter 2025 net revenues of RMB32.5 billion (US$4.6 billion), a slight decline from RMB33.2 billion a year earlier. Gross profit reached RMB7.4 billion, giving a gross margin of 22.9% versus 23.0% in 2024. Operating income rose to RMB2.90 billion (US$414.5 million), an operating margin of 8.9% compared with 8.6% a year ago. Net income attributable to shareholders was RMB2.6 billion (US$370.3 million), a net margin of 8.0% versus 7.4% previously. The company’s GAAP earnings per diluted ADS were RMB5.12 (US$0.73), while the non‑GAAP EPS of RMB5.66 (US$0.81) beat consensus estimates of RMB5.51 (US$5.51) by $0.15 or 2.7%. The EPS beat was driven by disciplined cost management that preserved margins even as revenue slipped, and by a favorable mix shift toward higher‑margin product categories.
For the full year 2025, Vipshop posted net revenues of RMB105.9 billion (US$15.1 billion) and a gross margin of 23.1%, down modestly from 23.5% in 2024. Net income for the year was RMB7.2 billion (US$1.0 billion), with a net margin of 6.8% versus 7.1% previously. The company also announced that it will return US$944.1 million to shareholders in 2025 through dividends and share repurchases, a commitment that aligns with its policy of distributing no less than 75% of non‑GAAP net income to shareholders.
Management emphasized its focus on stewarding capital to support long‑term growth. “Our focus remains on stewarding our capital to support the business priorities, ensuring we have both the flexibility and the financial foundation to execute our long‑term growth strategy,” said the company’s leadership during the earnings call. The firm reiterated its commitment to shareholder returns, noting that it intends to distribute at least 75% of its 2025 non‑GAAP net income to shareholders, consistent with its prior‑year policy.
Looking ahead, Vipshop guided first‑quarter 2026 revenues to a range of RMB26.3 billion to RMB27.6 billion, representing a year‑over‑year increase of 0% to 5%. The modest guidance reflects management’s cautious outlook on near‑term demand, citing macroeconomic weakness and intense competition in China’s e‑commerce sector. “The revenue miss in Q4 2025 and modest guidance for Q1 2026 reflect management’s cautious outlook on near‑term demand,” the company noted in its Q4 slides.
The mixed performance—revenue miss but EPS beat—highlights the company’s resilience. Revenue fell due to macro weakness and competitive pressure, while the EPS beat was largely a result of strict cost controls and a favorable product mix that helped maintain profitability. Gross and operating margins improved year‑over‑year, underscoring effective cost management. The company’s focus on AI integration, exclusive product lines, and enhanced merchandising capabilities positions it to capture growth opportunities as consumer demand stabilizes.
Overall, Vipshop’s Q4 2025 results demonstrate disciplined cost management and a resilient profitability profile amid a challenging market environment. The company’s modest Q1 2026 guidance signals cautious optimism, while its commitment to shareholder returns and strategic investments in technology and product differentiation suggest a focus on long‑term value creation.
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