Vipshop Holdings Ltd. Q1 FY2025 earnings call

Merchandising

• Focused on brand and products driving traffic, with Made for Vipshop business outperforming in Q1, over 200 brands joined by end of March, and high fashion selections like Burberry, Coach available.

Customers

• SVIP membership extended double-digit growth, active SVIP customers up 18% y-o-y and accounted for 51% of online spending; loyalty program enhancements planned, including relevant life privileges for SVIP members; AI applied in customer experience for search, recommendations, content, and service.

Organizational Restructuring

• Teams restructured for greater alignment and efficiency to drive growth, with strategic priorities on growing branded supply share, customer-engaging initiatives, and technology advancement.

Total net revenues for the first quarter of 2025 were RMB26.3 billion compared with RMB27.6 billion in the prior year period. Gross profit was RMB6.1 billion compared with RMB6.5 billion in the prior year period. Gross margin was 23.2% compared with 23.7% in the prior year period. Income from operations was RMB2.3 billion compared with RMB2.8 billion in the prior year period. Net income attributable to Vipshop's shareholders was RMB1.9 billion compared with RMB2.3 billion in the prior year period.

Q2 2025 Guidance

• Total net revenues expected between RMB25.5 billion and RMB26.9 billion, a year-over-year decrease of approximately 5% to 0%.

Full-Year 2025

• Expect to regain growth in the second half, with net margins largely comparable to 2024.

Risks

• Uncertain consumer sentiment, macroeconomic headwinds, tariff impacts, and intense competition in the e-commerce sector.

Q: About recent consumer sentiment and monthly GMV trend in Q2, and full-year 2025 revenue and earnings outlook A: In past months, consumption sentiment showed improvement, with better sales momentum in April and May; full-year 2025 expected to regain growth in second half, margins largely comparable to 2024 Q: About June 18th campaign sentiment and difference from last year A: Industry promotions normalized, Vipshop focuses on providing unique quality and off-price value-for-money deals Q: About tariff impact and potential secondary listing in Hong Kong A: Limited exposure to exports, working with export companies to access domestic market; evaluating option of Hong Kong listing internally Q: About SVIP program strategy, industry competition A: SVIP customer growth steady with double-digit growth expected full year; Vipshop remains anchored to discount retail value proposition to compete in e-commerce Q: About SVIP shopping frequency ARPU, return rate, and capital return guidance A: SVIP operating metrics stable with small decline due to new customers; return rates stabilized; 2025 capital return guidance maintained with no less than 75% of 2024 non-GAAP net income returned to shareholders Q: About trading program contribution and Shan Shan Outlets strategy A: Trading program contribution expected to be ~1% of total GMV; Shan Shan Outlets business has synergies with Vipshop, lease application submitted for review Q: About marketing campaign cadence and margin balance A: Marketing spend measured, expected to be within 3% of total revenue, with focus on effective channels for sustainable growth without dragging margins