Vipshop Holdings Ltd. Q4 FY2024 earnings call

• Apparel showed strength in Q4 with positive growth off a high base, and full-year apparel categories were up 2% accounting for 75% of GMV, helping close RMB200 billion in annual sales.
• Super VIP membership had double-digit growth; active Super VIP increased 50% in Q4, accounting for 51% of online spending, with 8.8 million active SVIP members contributing 49% of online spending annually.
• Focused on merchandising, including shaping brand and product portfolios, value offerings, and engaging family shoppers with balanced apparel and non-apparel assortments.
• Invested in merchandising capabilities, bringing in over 1,500 new brands, and the Made for VIP line was a meaningful driver for sales.
• Used technology to optimize search, recommendations, and applied AI for productivity in customer service, marketing content, and brand partner analysis.

Apparel categories were up 2% from the year ago for the full year, accounting for 75% of total GMV, the highest level in history. Non-apparel business narrowed its sales loss in the fourth quarter, driven in part by outperformance in home appearance and digital products, including growth from the government's trade-in program.

• Q1 2025 total net revenues expected to be between RMB26.3 billion and RMB27.6 billion, a year-over-year decrease of approximately 5% to 0%.
• Full year 2025 expected to return to positive trajectory in GMV and revenue, pursuing high-quality growth while maintaining solid profitability and maximizing growth opportunities.

Forward-looking statements are subject to risks and uncertainties outlined in Vipshop's SEC filings, including those that may cause actual results to differ from current expectations.

Q: Thomas Chong asked about Q1 revenue guidance, year-to-date performance, consumer sentiment, and 2025 outlook.

A: Eric Shen responded that Q1 year-to-date business is on track within guidance, consumer sentiment is slightly better than prior quarters, and 2025 aims to return business to positive trajectory with high-quality growth.

Q: Alicia Yap asked about drivers of 4Q outperformance and trade-in benefits in GMV.

A: Eric Shen said 4Q outperformance was due to improved consumer activity, better consumer sentiment, proactive merchandising, and promotions; trade-in program helped narrow non-apparel sales loss but had limited impact on absolute GMV.

Q: Wei Xiong asked about gross margin trend in 2025 and net profit margin outlook.

A: Eric Shen stated GP margin was at an 8-year high in 2024, and they plan to invest in growth while maintaining solid profitability, expecting flat net profit margin trend with potential for improved profit dollars through scale growth.

Q: Jialong Shi asked about AI applications in business and ARPU/Shopping frequency of Super VIP members.

A: Eric Shen mentioned internal AI deployment for personalization, customer service, and merchandising optimization; on SVIP, annual ARPU saw slight decline due to increased members, but two-year cohort ARPU remained resilient.