Vipshop (VIPS) investor relations material

Executive summary

• Navigated a challenging retail environment with value-conscious consumers, impacting near-term top-line performance, while maintaining leadership as an off-price retailer offering branded products at exceptional value through online and offline channels.

• Focused on core value proposition: curated, discounted brand products, resilient SVIP membership (grew 8% year-over-year, 10 million members, 54% of online spending), and a strong flywheel effect attracting quality brands and loyal customers.

• Leveraged 1P model, deep brand partnerships, and advanced AI integration in customer service, marketing, and operations to drive conversion, operational efficiency, and align product mix with evolving preferences.

• Shan Shan Outlets expanded to 22 malls, achieving over 20% GMV growth year-over-year, becoming China's largest outlet chain by store count, and contributing 11% to total GMV in 2025.

• Management emphasized disciplined execution, margin focus, and ongoing shareholder returns amid subdued consumer demand.

Financial highlights

• Q2 2026 net revenues were RMB 24.7 billion, down from RMB 25.8 billion year-over-year; 2025 net revenues were RMB 105.92 billion, down 2.3% year-over-year.

• Gross profit for Q2 2026 was RMB 5.8 billion; gross margin 23.3% (Q2 2026), 23.1% (2025), and 22.9% (Q2 2026).

• Income from operations was RMB 1.5 billion (Q2 2026); operating margin 6.2% (Q2 2026); non-GAAP operating margin 8.1%.

• Non-GAAP net income for Q2 2026 was RMB 392.2 million (1.6% margin), down from RMB 2.1 billion, impacted by a one-time withholding tax adjustment; adjusted, Q2 2026 net income was RMB 2.0 billion (7.9% margin).

• Net income attributable to shareholders surged to RMB 4.3 billion in Q2 2026, mainly due to a one-off investment gain from a commercial REIT listing.

Outlook and guidance

• Q3 2026 net revenues expected between RMB 20.3 billion and RMB 21.4 billion, a year-over-year decrease of approximately 5% to 0%.

• Consumer sentiment remains cautious and value-driven; full-year revenue expected to be slightly negative year-over-year.

• Operating and net profit margins expected to remain stable in the second half due to cost discipline.

• Plans to solidify market leadership by enhancing merchandising, expanding merchandise portfolio, and investing in technology including AI and big data.

• Shan Shan Outlets expected to maintain over 20% GMV growth in the second half.