Vipshop (VIPS) Q2 2025 earnings summary

Executive summary

• Business stabilized with renewed growth in GMV, especially in apparel and Super VIP segments, despite a year-over-year decline in active customers and total orders.

• Maintains leadership as China's top online discount retailer for branded products, focusing on value-for-money, merchandising, and customer loyalty.

• AI initiatives and technology advancements are enhancing customer experience and operational efficiency.

• Integrates online and offline channels, expanding physical footprint and supplementing digital presence.

• Committed to ESG, aiming for carbon neutrality by 2030 and recognized with an "AA" MSCI ESG rating.

Financial highlights

• Q2 2025 net revenues were RMB 25.8 billion, down 4% year-over-year; FY2024 revenues were RMB 108,421 million, down 3.9%.

• Gross profit for Q2 2025 was RMB 6.1 billion, with gross margin at 23.5%-23.6%, nearly flat year-over-year.

• Net income attributable to shareholders for Q2 2025 was RMB 1.5 billion, down from RMB 1.9 billion.

• Non-GAAP net income for Q2 2025 was RMB 2.1 billion, with non-GAAP net margin at 8.0%-8.1%.

• Cash and equivalents plus restricted cash at Q2 2025 totaled RMB 24.7 billion; FY2024 TTM free cash inflow was RMB 24,014 million.

Outlook and guidance

• Q3 2025 net revenues expected between RMB 20.7 billion and RMB 21.7 billion, a year-over-year increase of 0%-5%.

• Management aims for sustainable, quality growth in customers and revenue while maintaining profitability and expanding offline presence.