Vipshop Holdings Limited (NYSE: VIPS), a premier online discount retailer in China, announced robust financial results for both the fourth quarter and the entire year of 2023.
The company achieved a 9.2% increase in fourth-quarter revenues, reaching RMB34.7 billion (US$4.9 billion), and a 9.4% rise for the full year, amounting to RMB112.9 billion (US$15.9 billion).
This performance underscores Vipshop’s successful navigation through the retail landscape, leveraging its strategic focus on brand discounts to attract value-conscious consumers.
Significant growth was also seen in Gross Merchandise Value (GMV), with a 21.9% increase in the fourth quarter to RMB66.4 billion and an 18.7% rise for the year, reaching RMB208.0 billion.
The company’s gross profit followed suit, climbing by 19.3% in the last quarter to RMB8.2 billion (US$1.2 billion) and by 19.0% annually to RMB25.7 billion (US$3.6 billion).
Furthermore, net income attributable to shareholders soared by 32.2% quarterly and 28.9% annually, to RMB3.0 billion (US$415.8 million) and RMB8.1 billion (US$1.1 billion), respectively.
Active customer numbers and total orders also saw upward trends, with the former increasing by 3.9% year-over-year to 87.4 million and the latter by 9.8% to 812.3 million.
These figures highlight Vipshop’s growing market penetration and consumer trust.
Eric Shen, Chairman and CEO, attributed the success to the company’s adept execution of its merchandising strategy and focus on apparel, which resulted in crossing the RMB200 billion mark in annual GMV for the first time.
Mark Wang, CFO, echoed this sentiment, noting 2023 as Vipshop’s most profitable year, driven by efficiency improvements and operational discipline.
Looking forward, Vipshop anticipates first-quarter revenues for 2024 to be between RMB27.5 billion and RMB28.9 billion, indicating a cautious yet optimistic outlook amid dynamic market conditions.
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