China e-commerce company Vipshop Holdings reported first-quarter results early Thursday that fell short on revenue due to sluggish demand and a drop in active customers, but beat views on earnings. VIPS stock jumped.
The company reported adjusted earnings of 33 cents a share on revenue of $4 billion. Analysts expected Vipshop to report earnings of 31 cents on revenue of $4.16 billion.
Revenue dropped 11% from the year-ago period, due to "sluggish demand in discretionary items," the company said. It reported having 42.2 million active customers, down from 45.8 million in the year-ago period.
VIPS stock climbed 2.2% to close at 8.57 on the stock market today.
VIPS Stock: Covid Takes Its Toll
Covid-19 shutdowns, supply chain issues and weak economic conditions continue to hurt China e-commerce companies across the board.
"In the first quarter, we achieved resilient margins thanks to our initiatives to manage cost and expenses with greater discipline," Vipshop Chief Financial Officer David Cui said in written comments with the earnings release.
Cui went on to say: "While we remain cautious amid ongoing uncertainties, we are firmly committed to our strategic positioning as a discount platform for branded products."
The Vipshop earnings report follows that of JD.com, which reported first-quarter results early Tuesday. JD.com beat revenue expectations despite China lockdowns.
Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.
