JD.com’s second-quarter profit climbs 15% as food-delivery losses narrow

Chinese e-commerce giant JD.com reported a 15% increase in net profit for the second quarter, reaching 7.1 billion yuan (US$1.1 billion), surpassing market expectations. Despite a slight decline in overall revenue, JD.com's earnings outperformed the 342.1 billion yuan consensus estimate. CEO Sandy Xu Ran attributed the success to core retail division profitability and reduced losses in new ventures such as food delivery.

The company's core retail segment, encompassing electronics, home appliances, and general merchandise, reported operating income of 13.5 billion yuan, slightly lower than the 13.9 billion yuan reported a year earlier. JD.com's investments in food delivery, logistics, and international operations, while boosting overall revenue, have placed pressure on profitability.

Analysts noted that JD.com faced headwinds in food delivery due to competition from market leaders Meituan and Alibaba Group Holding, but investment discipline improvements have helped narrow losses in this area. Amidst intense price competition among major e-commerce platforms, JD.com is expanding its global presence. In March, the company introduced its Joybuy online marketplace to six European markets, including the UK, Germany, France, the Netherlands, Belgium, and Luxembourg.

Joybuy offers same-day and next-day delivery in major European cities, with more than 40 million consumers benefiting from same-day delivery. This strategy aims to differentiate JD.com from competitors like Amazon.com and to enhance user retention.