Vipshop (VIPS) Q4 2025 earnings summary

Executive summary

• Achieved RMB 105.9 billion in revenue for 2025, with non-GAAP net income of RMB 8.7 billion and 53 consecutive quarters of profitability, supported by 85 million active customers and 732 million total orders.

• Maintained market leadership as China's top online discount retailer, focusing on merchandising, operational excellence, and omni-channel expansion.

• Fourth quarter results were slightly below expectations due to weak winter apparel demand and delayed holiday shopping.

• Super VIP program drove double-digit active member growth, contributing 52% of online spending and showing >7x shopping frequency and >8x ARPU compared to non-SVIP customers.

• Management emphasized operational resilience, AI-driven efficiency, and a focus on quality growth and capital returns.

Financial highlights

• Q4 2025 net revenues: RMB 32.5B (down from RMB 33.2B YoY); gross profit: RMB 7.4B (down from RMB 7.6B YoY); gross margin: 22.9%.

• Q4 operating income: RMB 2.90B (up 1.7% YoY); operating margin: 8.9%.

• Q4 net income attributable to shareholders: RMB 2.6B (up 5.8% YoY); net margin: 8.0%.

• Full year 2025 net revenues: RMB 105.9B (down from RMB 108.4B YoY); net income: RMB 7.2B (down from RMB 7.7B YoY); non-GAAP net income: RMB 8.7B; net margin: 6.8%; non-GAAP net margin: 8.3%.

• Cash and equivalents at year-end: RMB 24.1B; short-term investments: RMB 5.8B; free cash flow: RMB 5.4B.

Outlook and guidance

• Q1 2026 net revenues expected between RMB 26.3B and RMB 27.6B, representing 0%-5% YoY growth.

• Margins expected to remain stable in 2026, with focus on sustainable, profitable growth driven by AI and operational excellence.

• Customer activity rebounded in early 2026, supporting guidance.

• Plans to solidify market leadership by enhancing merchandising, expanding merchandise portfolio, and growing high-value customer segments.