Vipshop stock leaps on Q4 top and bottom line beat

Investing.com -- Vipshop Holdings (NYSE:VIPS) saw its shares pop over 10% in premarket trading Friday after the Chinese e-commerce company reported better-than-expected top and bottom lines for the fourth quarter.

The company posted earnings per share (EPS) of RMB5.70, down from RMB5.79 a year earlier but ahead of analyst expectations of RMB4.99. Revenue for the period totaled RMB33.2 billion, also surpassing the consensus estimate of RMB31.89 billion.

The number of active customers declined 5.8% year-over-year to 45.7 million, missing the estimate of 46.54 million.

Total orders fell 7.2% to 217.5 million, slightly below the projected 218.23 million.

Vipshop reported an adjusted operating margin of 10.2%, down from 11.4% in the prior year.

Adjusted operating income came in at RMB3.39 billion, marking a 14% decline from a year earlier but ahead of the RMB3.07 billion analysts had expected.

"We delivered results well above our expectations in the fourth quarter, concluding a challenging year," said Eric Shen, Chairman and CEO of Vipshop. 

"With the continuity of our strategy, and increased agility and flexibility in our business, we are better positioned going into 2025 and remain confident in our long-term growth trajectory."

For the first quarter of 2025, Vipshop forecasts revenue between RMB26.3 billion and RMB27.6 billion, representing a year-over-year change ranging from a 5% decline to flat growth. The midpoint of this range aligns closely with the consensus estimate of RMB26.43 billion.