Vipshop Holdings Limited (VIPS) Tuesday reported a swing to profit in the first quarter from a loss last year, as the Chinese online discount retailer benefited from robust growth in its customer base. Earnings for the quarter came in ahead of Wall Street estimates.
The company also detailed an impressive sales outlook for the second quarter. Following the announcement of results, Vipshop stock peaked for the year, trading up 12.7 percent in after-hours trade on the New York Stock Exchange.
Vipshop has been optimizing its product selection and has expanded partnerships with premium brands to attract high-income customers and improve volumes.
The company posted quarterly net earnings of $5.8 million or $0.11 per American Depositary Share, or ADS. This compares with a net loss of $8.6 million or $0.33 per ADS in the prior year.
Excluding items, adjusted earnings for the quarter were $9 million or $0.17 per ADS, compared with adjusted loss of $6.5 million or $0.25 per share a year ago.
Net revenues for the quarter surged to $310.7 million from $101 million last year. Analysts had a consensus revenue estimate of $268.74 million for the quarter.
Vipshop's active customers rose to 2.8 million from 1.0 million a year earlier.
"Despite the seasonality associated with the Chinese New Year holiday, we saw a faster and stronger rebound in customer spending and activities in the wake of the holiday period as compared to previous years...," said CEO Eric Shen.
Gross margin for the quarter improved to 23.4 percent from 21.2 percent in the prior year.
For the second quarter, the company expects net revenues of $330 million to $335 million, while analysts currently estimate $320.59 million in revenues.
Vipshop stock closed Tuesday at $33.40, up 5.86%, on a volume of about 1 million shares. In after hours, the stock gained $4.25 or 12.72%.
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