Vipshop Holdings reported fourth-quarter results early Wednesday that beat on earnings but missed analyst estimates on revenue. VIPS stock plunged.
The China e-commerce company reported adjusted earnings of 41 cents a share on revenue of $5.4 billion. Analysts expected Vipshop to report earnings of 33 cents a share on revenue of $5.6 billion. Revenue fell 2% from the year-ago period.
VIPS stock dropped 11.9%, closing at 8.67 on the stock market today.
China stocks have been hammered this past year in large part due to extensive crackdowns by Chinese government regulators. Stocks hit hard include Alibaba, Baidu and Tencent Holdings.
The clampdown that began in late 2020 has hit almost every corner in the industry, causing investors to pull out of China stocks. VIPS stock is down 75% in the past 12 months.
Alibaba reports quarterly results on Thursday, before the market open.
VIPS Stock: Gross Merchandise Volume Falls
Gross merchandise volume in the fourth quarter fell 3.8% to $9 billion. Active customers on Vipshop dropped 8% to 49.2 million. For the year, active customers climbed 12% to 93.9 million.
Founded in 2008, Vipshop offers thousands of domestic and international brands at discount prices. It appeals to urban, fashion-oriented and value-conscious consumers.
"Driven by steady growth in both customer base and average revenue per customer, our total revenue for 2021 increased by 14.9% year over year, although the fourth quarter came under some pressure," Chief Financial Officer David Cui said in written remarks with the Vipshop earnings release.
Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.
