Vipshop (VIPS) Q4 2024 earnings summary

Executive summary

• Full year 2024 net revenues were RMB 108.4 billion, with non-GAAP net income of RMB 9.0 billion and 49 consecutive quarters of profitability.

• Apparel categories grew 2% year-over-year, accounting for 75% of GMV, and Super VIP memberships saw double-digit growth, contributing 51% of online spending.

• Processed 757 million total orders and served 85 million active customers in 2024.

• Strategic investments in merchandising, technology, and AI enhanced customer experience and operational efficiency.

• Maintained strong market leadership as China's leading online discount retailer for branded products.

Financial highlights

• Q4 2024 net revenues were RMB 33.2 billion, down from RMB 34.7 billion year-over-year; gross profit was RMB 7.6 billion (23.0% margin), down from RMB 8.2 billion (23.7% margin).

• Full-year 2024 net revenues were RMB 108.4 billion (down from RMB 112.9 billion); gross margin reached 23.7%, an eight-year high.

• Full-year non-GAAP net income attributable to shareholders was RMB 9.0 billion (8.3% margin); Q4 non-GAAP net income was RMB 3.0 billion (9.0% margin).

• Q4 2024 net income attributable to shareholders was RMB 2.4 billion (7.4% margin), down from RMB 3.0 billion (8.5% margin).

• Free cash flow reached RMB 5.6 billion in 2024; cash and equivalents stood at RMB 27.0 billion at year-end.

Outlook and guidance

• Q1 2025 net revenues expected between RMB 26.3 billion and RMB 27.6 billion, a year-over-year decrease of approximately 5% to 0%.

• Management expects a return to positive GMV and revenue trajectory in 2025, with continued focus on high-quality growth and solid profitability.

• Plans to solidify market leadership by enhancing merchandising capabilities and expanding merchandise portfolio.

• Will continue to expand physical footprint and integrate offline with online platforms.

• Gross profit margin is expected to remain stable, with potential for reinvestment to drive growth; net profit margin anticipated to be flat year-over-year.