Vipshop Holdings reported second-quarter 2026 earnings that fell short of analyst expectations, sending shares down 2.9% to $13.90 in premarket trading on Tuesday. The company posted adjusted earnings of $2.91 per American Depositary Share (ADS), missing the $3.94 forecast by 26.1%. Revenue totaled $24.71 billion, down 0.7% from the prior-year period and slightly below the $24.88 billion consensus.
Total net revenues in RMB declined 4.3% year-over-year to RMB 24.7 billion, with gross profit falling to RMB 5.8 billion from RMB 6.1 billion. Gross margin edged down to 23.3% from 23.5%. Operating income under GAAP decreased to RMB 1.5 billion, while non-GAAP operating income fell to RMB 2.0 billion. Net income attributable to shareholders surged to RMB 4.3 billion due to a one-time investment gain tied to a commercial REIT listing, though non-GAAP net income dropped to RMB 392.2 million.
Tax expenses ballooned to RMB 3.3 billion, driven by a RMB 1.63 billion charge related to Shan Shan Commercial Group’s REIT issuance and RMB 1.56 billion in withholding taxes on historical dividends. Cash and equivalents stood at RMB 29.9 billion, with an additional RMB 3.6 billion in short-term investments.
Management highlighted a challenging retail environment, with CEO Eric Shen noting heightened consumer selectivity amid intense promotional activity. Active SVIP members grew 8% year-over-year to 10 million, accounting for 54% of online spending. Shan Shan Outlet expanded to 22 malls and launched two public REITs, with GMV growth exceeding 20% in the first half.
For the third quarter, Vipshop guided revenue to RMB 20.3–21.4 billion, implying a year-over-year decline of roughly 5% to flat. Full-year revenue is expected to remain slightly negative versus 2025, though Shan Shan Outlet’s GMV growth is projected to exceed 20% for the year.
The company reaffirmed its capital return commitment, having distributed approximately $400 million to shareholders in the first half and approving a new $1 billion share repurchase program. It also pledged to return no less than 75% of full-year 2025 non-GAAP net income to shareholders.
