JD.com expects second-half electronics sales to improve after quarterly revenue falls
This is its first quarterly revenue decline in more than a decade
JD.com, a leading sales platform for consumer electronics in China, announced on Thursday (Aug 13) that it expects second-half sales in the home-appliance category to improve, following its first quarterly revenue decline in over a decade. CEO Sandy Xu attributed the decline to a high comparison base from the previous year and rising raw materials costs, but expressed confidence in momentum picking up in June.
Despite the decline, JD.com exceeded revenue estimates, helped by a longer sales period for the annual 618 shopping festival, one of China’s largest online retail events. The company's US-listed shares dropped by 3.5% at 1342 GMT. The e-commerce giant reported a net profit of 7.1 billion yuan for the quarter, up from 6.2 billion yuan in the same period last year, with non-GAAP net profit increasing by 20%.
Analysts had estimated revenues at 344.6 billion yuan, according to LSEG data. The decline in revenue highlights the challenges faced in reviving consumer spending amid concerns over job security and weak consumer confidence due to China’s long-standing property sector downturn. The 618 event, celebrating JD.com’s founding date, ran for more days than the previous year, providing retailers and brands with additional time to compete for consumer spending through discounts and promotional campaigns.
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