Vipshop Holdings Limited Q2 FY2025 earnings call

• Team acted swiftly to revive customer activities and sales momentum, driving business stabilization. Total GMV returned to growth with strength in apparel-related categories. • Pursuing a merchandising strategy focused on 3 pillars: relevancy, differentiation, and specialization. Added nearly 500 brands in the first half, with the Made for Vipshop line maintaining strong sales momentum. • Leveraging AI capabilities to enhance customer journey, marketing, and conversions. • Prioritized investments in growth initiatives related to customer engagement and merchandising, maintaining financial discipline while aiming for sustainable, profitable growth. • Firmly on track to deliver at least 75% of 2024 non-GAAP net income to shareholders via dividends and share buyback.

Total net revenues for the second quarter of 2025 were RMB 25.8 billion, down from RMB 26.9 billion in the prior year period. Gross profit was RMB 6.1 billion, down from RMB 6.3 billion. Gross margin was 23.5% compared to 23.6% in the prior year. Operating income was RMB 1.7 billion, down from RMB 2.2 billion. Net income attributable to Vipshop shareholders was RMB 1.5 billion, down from RMB 1.9 billion. Non-GAAP operating income was RMB 2.4 billion, down from RMB 2.6 billion. As of June 30, 2025, the company had cash and cash equivalents and restricted cash of RMB 24.7 billion with short-term investments of RMB 3.0 billion. Active SVIP customers increased by 15% year-over-year, contributing 52% of online spending.

• Expected total net revenues for the third quarter of 2025 to be between RMB 20.7 billion and RMB 21.7 billion, representing a year-over-year increase of approximately 0% to 5%. • Committed to returning no less than 75% of the 2024 non-GAAP net income to shareholders through dividend payments and share buyback.

Q: About the latest e-commerce competition and its impact on Vipshop, and whether weather affected apparel purchases?

A: No material impact from quick commerce initiatives; weather conditions didn't meaningfully affect apparel purchases or customer outings.

Q: About Q3 revenue guidance and the reason for increased share repurchase?

A: Q3 guidance due to recovery in customer growth and merchandising optimizations; share repurchase is part of the continuous shareholder return commitment as part of the plan to return at least 75% of 2024 non-GAAP net income to shareholders.

Q: About return rate and Shan Shan Outlet business?

A: Return rate relatively stable with SVIP growth, expecting slight quarterly fluctuations; Shan Shan Outlets have 20 stores with double-digit same-store growth, planning to expand in suitable cities as the outlet industry prospers in China.