Earnings call transcript: Vipshop Q2 2026 profit miss weighs on shares

Vipshop Holdings reported weaker-than-expected second-quarter 2026 earnings, missing analyst forecasts on both profit and revenue. The company's earnings per diluted ADS were $2.91, below the $3.94 forecast, while revenue stood at $24.71 billion, slightly below the $24.88 billion estimate. Premarket trading saw Vipshop shares drop 2.93% to $13.90, nearing the lower end of its 52-week range.

The earnings miss was primarily due to higher fulfillment costs, rising return rates, and a challenging retail environment in China. Gross margin remained steady at 23.3%, but operating income weakened as revenue fell and fixed costs were spread across a smaller base. GAAP net income surged to RMB 4.3 billion, driven by a one-time investment gain, while non-GAAP net income fell to RMB 392.2 million.

The company's outlook for the rest of 2026 remains cautious, with guidance pointing to a slight decline in revenue and slightly negative full-year revenue compared to 2025. Vipshop highlighted strong SVIP membership growth, a larger buyback plan, and continued momentum at Shan Shan Outlet as key growth drivers.