Vipshop Holdings Ltd – ADR (NYSE:VIPS) posted that total net revenue for Q3 2017 jumped by 27.6% to RMB15.3 billion over the prior year period, primarily led by the growth in the count of total active consumers and average revenue per customer. The count of active customers for Q3 2017 came at 23.8 million as compared to 20.8 million in the comparable year period. Also, the count of total orders for Q3 2017 came at 74 million compared to 60.1 million in the previous year period.
Vipshop reported that gross profit for Q3 2017 came at RMB3.5 billion compared to RMB2.9 billion in the same quarter, a year earlier. Gross margin was 22.9% versus 24.4% in the prior year period, mainly attributable to investment in promotional initiatives for market share gain, which is balanced by lower spending in the firm’s broader marketing initiatives.
Mr. Eric Shen, the CEO and Chairman of Vipshop, expressed that they witnessed healthy growth in their total active clients for the trailing twelve months closed September 30, 2017, which jumped to more than 60 million. Importantly, their core categories continue to show strong growth, adding hundreds of international and domestic fashion brands to company’s portfolio in the past quarter. They remain committed to enriching their offering, including launch of marketplace operations, which will continue to enhance their user experience.
Mr. Donghao Yang, the Chief Financial Officer of Vipshop, further added that in Q3 2017, the topline came at the high-end of their projection range, increasing by almost 28% year over year. Their initiatives to manage new and existing users are bearing fruit, as shown by the improved customer loyalty and stickiness across their platform.
In Q3 2017, Vipshop launched three more local warehouses in Hohhot, Hefei, and Taiyuan, China, totaling around 32,000 square meters and totaling the firm’s count of local warehouses to 14 as of September 30, 2017.