Vipshop Holdings (VIPS) reported better-than-expected first-quarter earning early Wednesday, but revenue was in line while its sales guidance was light. VIPS stock fell.
The China e-commerce company reported adjusted earnings of 37 cents a share on revenue of $4.33 billion. Analysts expected Vipshop to report earnings of 35 cents on revenue of $4.3 billion, according to FactSet.
The Chinese company guided low on Q2 revenue.
VIPS stock fell 5.5% during premarket action on the stock market today.
To draw in buyers to its website, Vipshop specializes in promotions and “flash sales” on a daily basis. It typically involves a curated selection of popular branded products in limited quantities. It’s gone a long way to help VIPS stock and aid in boosting its repeat business.
Founded in 2008, Vipshop offers thousands of domestic and international brands at discount prices. It appeals to urban, fashion-oriented and value-conscious consumers.
JD.com (JD) was also scheduled to report quarterly results Wednesday morning.
Tencent reported quarterly results last week that topped estimates as online gaming revenue surged during China’s coronavirus lockdown.
Alibaba also reported mixed quarterly results and set a milestone by serving 1 billion active users on its e-commerce platform.
Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.
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