China's Vipshop Q4 revenue dips, profit rises as costs drop

Overview

• China online discount retailer's Q4 revenue fell slightly yr/yr

• Q4 net income rose 5.8% yr/yr

• Company returned US$944.1 mln to shareholders in 2025

Outlook

• Vipshop expects Q1 2026 revenue between RMB26.3 bln and RMB27.6 bln

• Company aims to drive growth through AI and strategic investments

Result Drivers

• AI ENHANCEMENTS - Vipshop leveraged AI-driven enhancements to improve operational efficiency and customer experience, according to CEO Eric Shen

• COST MANAGEMENT - Decrease in operating expenses contributed to profitability, as operating expenses fell 3.7% yr/yr

• STRATEGIC REALIGNMENT - Focus on strategic realignment and operational resilience laid foundation for long-term growth, per CEO Eric Shen

Company press release: ID:nPn9p1lNqa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 11 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the online services peer group is "buy"

• Wall Street's median 12-month price target for Vipshop Holdings Ltd is $20.00, about 12.7% above its February 25 closing price of $17.75

• The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 7 three months ago

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