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On Tuesday, Vipshop Holdings (NYSE:VIPS) retained its Buy rating from Jefferies, with the firm maintaining its price target of $18.30. According to InvestingPro data, the stock currently trades at an attractive P/E ratio of 6.34 and has demonstrated strong momentum with a 19% gain year-to-date. The company’s financial health score is rated as "GREAT," and analysis suggests the stock is currently undervalued. Following the release of the company’s first-quarter results, Jefferies analyst Thomas Chong provided insights into Vipshop’s performance. The company’s total revenue matched consensus forecasts and Jefferies’ own estimates. Vipshop’s Gross Merchandise Volume (GMV) remained flat year-over-year, beating Jefferies’ expectations, which had anticipated a slight decline. The company maintains a healthy gross profit margin of 23.5% and generates strong returns, with a return on equity of 20%.
The non-GAAP operating profit for Vipshop was in line with consensus estimates, while non-GAAP earnings surpassed expectations. Looking ahead, the company’s revenue guidance for the second quarter of 2025 aligns with the consensus and Jefferies’ estimates. The mid-point of the projected revenue range was specifically highlighted as matching these expectations. InvestingPro subscribers have access to 10 additional key insights about Vipshop, including detailed analysis of its cash flow strength and shareholder returns, along with a comprehensive Pro Research Report that provides deep-dive analysis of the company’s fundamentals.
Vipshop’s management is scheduled to hold a conference call to discuss the quarterly results further. The call is set for 7:30pm Hong Kong Time (HKT), which corresponds to 7:30am Eastern Standard Time (EST) on the same day.
The reaffirmation of the Buy rating and the price target suggests Jefferies’ continued confidence in Vipshop’s stock. The company’s ability to meet revenue expectations and deliver a solid performance in GMV and non-GAAP earnings appears to underpin this optimistic outlook. The upcoming conference call is anticipated to provide additional details and management’s perspective on the company’s performance and future expectations.
In other recent news, Vipshop Holdings Limited reported its first-quarter earnings, surpassing analyst expectations with adjusted earnings per share of RMB4.66 against the projected RMB4.36. Despite this earnings beat, the company’s revenue fell short of estimates, coming in at RMB26.3 billion compared to the anticipated RMB26.53 billion. This revenue miss was accompanied by disappointing guidance for the second quarter, with expected revenue between RMB25.5 billion and RMB26.9 billion, placing the midpoint below current analyst estimates. The company’s first-quarter revenue showed a modest year-over-year increase of 1.9%. The revenue shortfall and weak future outlook overshadowed the positive earnings results. Analyst firms have not provided updates on stock upgrades or downgrades following these developments. These recent updates reflect ongoing challenges for Vipshop in meeting revenue expectations.
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