Vipshop Q2 Earnings: Strong Growth in SVIP and Exclusive Brand Partnerships

Vipshop Q2 earnings show net revenue of RMB25.8 billion and non-GAAP net income per ADS of RMB4.06. Active SVIP customers, a high-value loyalty program, increased by 15% YoY and contributed 52% of online spending. The company's focus on exclusive brand partnerships and customized products has improved its competitive positioning and customer loyalty. Vipshop also reaffirmed its commitment to return at least 75% of its RMB9 billion fiscal 2024 non-GAAP net income to shareholders in 2025.

Vipshop Holdings Limited (NYSE: VIPS), a leading online discount retailer in China, reported its unaudited financial results for the second quarter of 2025. The company's net revenue for the period amounted to RMB25.8 billion (US$3.6 billion), marking a decrease of 4.5% year over year (YoY). Despite the decline in revenue, Vipshop's non-GAAP net income per ADS stood at RMB4.06 (US$0.57), representing a 1.9% increase from the same period last year.

The company's gross profit for the quarter was RMB6.1 billion (US$845.2 million), down 2.3% from the prior year, while gross margin remained stable at 23.5%. Operating expenses increased by 6.3% YoY to RMB4.6 billion (US$637.0 million), resulting in an operating margin of 6.6%.

Active SVIP customers, a high-value loyalty program, increased by 15% YoY to 43.5 million, contributing 52% of online spending. This growth reflects Vipshop's focus on exclusive brand partnerships and customized products, which have bolstered its competitive positioning and customer loyalty.

Vipshop's non-GAAP net income attributable to shareholders for the quarter was RMB2.1 billion (US$290.0 million), up 3.3% YoY. The company also reaffirmed its commitment to return at least 75% of its RMB9 billion fiscal 2024 non-GAAP net income to shareholders in 2025. During the quarter, Vipshop repurchased US$349.8 million of its ADSs under its current US$1.0 billion share repurchase program.

For the third quarter of 2025, Vipshop expects its total net revenues to be between RMB20.7 billion and RMB21.7 billion, representing a year-over-year increase of approximately 0% to 5%. The company will hold a conference call on August 14, 2025, to discuss its financial results in detail.

References:
[1] https://www.prnewswire.com/news-releases/vipshop-reports-unaudited-second-quarter-2025-financial-results-302529932.html