Vipshop Reports Q2 2025 Non-GAAP EPS Beat Despite Revenue Decline

Vipshop (VIPS.US) announced its unaudited financial results for the second quarter of 2025, reporting total net revenues of RMB25.8 billion (US$3.6 billion). Non-GAAP net income attributable to Vipshop's shareholders for the quarter was RMB2.1 billion (US$290.0 million), a slight decrease from RMB2.2 billion in the prior year period. Non-GAAP net income per diluted ADS was RMB4.06 (US$0.57), surpassing the analyst estimate of US$0.56, while total net revenues were below the analyst estimate of US$25.80 billion for the quarter. Total net revenues saw a year-over-year decrease of 4.1% from RMB26.9 billion in the prior year period.

Key Business Drivers

The company's Gross Merchandise Value (GMV) for Q2 2025 increased by 1.7% year-over-year to RMB51.4 billion, driven by solid performance in apparel categories and double-digit growth in Super VIP members. However, the number of active customers for the second quarter of 2025 was 43.5 million, down from 44.3 million in the prior year period. Total orders also saw a decrease to 193.0 million from 197.8 million in the prior year period.

Operational Efficiency and Shareholder Returns

Vipshop achieved a healthy profitability with non-GAAP operating margin at 9.3% for the second quarter of 2025, compared to 9.5% in the prior year period. Fulfillment expenses decreased by 2.6% year-over-year to RMB2.1 billion. The company repurchased US$349.8 million of its ADSs under its current US$1.0 billion share repurchase program, demonstrating its commitment to shareholder returns.

Management Outlook

For the third quarter of 2025, Vipshop expects its total net revenues to range between RMB20.7 billion and RMB21.7 billion. This forecast represents a year-over-year increase of approximately 0% to 5%. Management indicated their consistent strategy and focused execution position the company well for sustainable growth.