Vipshop Reports Unaudited First Quarter 2026 Financial Results
Rhea-AI Summary
Vipshop (NYSE: VIPS) reported first quarter 2026 results with total net revenues of RMB26.6 billion, up 1.2% year over year, and GMV of RMB56.9 billion, up 8.6%.
Gross margin rose to 24.4%, net income attributable to shareholders increased 13.6% to RMB2.2 billion, and diluted EPS reached RMB4.48. Non-GAAP net income was stable at RMB2.31 billion. Vipshop generated quarterly free cash flow of RMB1.6 billion and ended March 31, 2026 with RMB28.3 billion in cash and cash equivalents plus restricted cash, and RMB2.7 billion in short-term investments. For Q2 2026, Vipshop guides revenue to RMB24.5–25.8 billion, implying a year-over-year change of approximately -5% to 0%.
AI-generated analysis. Not financial advice.
Positive
- Total net revenues grew 1.2% year over year to RMB26.6 billion
- GMV increased 8.6% year over year to RMB56.9 billion
- Gross profit rose 6.8% to RMB6.5 billion; margin up to 24.4%
- Income from operations increased 9.7% to RMB2.5 billion; margin 9.4%
- Net income attributable to shareholders grew 13.6% to RMB2.2 billion; margin 8.3%
- Quarterly free cash flow improved to RMB1.61 billion from an outflow
- Trailing 12‑month free cash flow increased to RMB8.75 billion from RMB5.17 billion
- Cash, cash equivalents and restricted cash reached RMB28.3 billion, plus RMB2.7 billion short‑term investments
Negative
- Total operating expenses rose to RMB4.2 billion, 15.7% of revenues
- Fulfillment expenses increased to RMB2.0 billion, 7.7% of revenues vs 7.2%
- Non‑GAAP net income was flat at RMB2.31 billion year over year
- Non‑GAAP net margin slipped to 8.7% from 8.8%
- Q2 2026 revenue guidance of RMB24.5–25.8 billion implies -5% to 0% YoY
News Market Reaction – VIPS
On the day this news was published, VIPS gained 2.11%, reflecting a moderate positive market reaction. Argus tracked a trough of -2.7% from its starting point during tracking. Our momentum scanner triggered 10 alerts that day, indicating notable trading interest and price volatility. This price movement added approximately $144M to the company's valuation, bringing the market cap to $6.97B at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
VIPS was up 0.78% with elevated volume, while key internet retail peers like W (+12.21%), GLBE (+4.86%) and ETSY (+2.84%) saw stronger gains. Momentum scans flagged JD moving down (-2.68%), diverging from VIPS.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 26 | Q4 & FY 2025 earnings | Positive | +2.1% | Revenue and net income growth with strong cash generation and shareholder returns. |
| Nov 20 | Q3 2025 earnings | Positive | -7.0% | Revenue, GMV and earnings growth but gross margin compression and stock sold off. |
| Aug 14 | Q2 2025 earnings | Negative | +5.9% | Revenue and earnings declined year over year despite healthy gross margin. |
| May 20 | Q1 2025 earnings | Negative | -7.2% | Revenue, orders, and active customers fell, though profitability stayed solid. |
| Feb 21 | Q4 & FY 2024 earnings | Neutral | +1.4% | Full-year revenue declined but GMV and apparel categories showed modest growth. |
Earnings have produced mixed reactions: solid profit growth often met with both rallies and selloffs, showing no consistent directional pattern around results.
Over the last five earnings releases, Vipshop reported steady profitability with periods of revenue pressure and GMV growth. Events on Feb 26, 2026 and Nov 20, 2025 highlighted revenue growth and higher net income, while Q1 and Q2 2025 showed revenue declines but maintained margins. Market reactions ranged from about -7% to nearly +6%, indicating that investor response to earnings quality and guidance has been inconsistent. Today’s Q1 2026 release fits into this series of incremental, profitability-focused updates.
Historical Comparison
In the past 5 earnings releases, VIPS averaged a -0.96% move with both sharp gains and selloffs, so reactions to this Q1 2026 report would sit against a volatile backdrop.
Recent earnings show a shift from revenue declines in 2024–2025 toward stabilizing growth and expanding margins, with GMV and profitability remaining key focal points.
Market Pulse Summary
This announcement highlights modest top-line growth with stronger profitability: Q1 2026 net revenues reached RMB26.6 billion while net income rose to RMB2.2 billion and gross margin improved to 24.4%. Active customers and orders both grew slightly, and cash stood at RMB28.3 billion. However, Q2 revenue guidance of RMB24.5–25.8 billion points to flat to declining sales. Investors may focus on whether margin gains and GMV growth can offset a potentially softer revenue outlook.
Key Terms
gmv financial
non-gaap financial
ads financial
free cash flow financial
AI-generated analysis. Not financial advice.
Conference Call to Be Held at 7:30 A.M.
First Quarter 2026 Highlights
- Total net revenues for the first quarter of 2026 increased by
1.2% year over year toRMB26.6 billion (US ) from$3.9 billion RMB26.3 billion in the prior year period. - GMV[1] for the first quarter of 2026 increased by
8.6% year over year toRMB56.9 billion fromRMB52.4 billion in the prior year period. - Gross profit for the first quarter of 2026 increased by
6.8% year over year toRMB6.5 billion (US ) from$941.6 million RMB6.1 billion in the prior year period. - Net income attributable to Vipshop's shareholders for the first quarter of 2026 increased by
13.6% year over year toRMB2.2 billion (US ) from$319.8 million RMB1.9 billion in the prior year period. - Non-GAAP net income attributable to Vipshop's shareholders[2] for the first quarter of 2026 was
RMB2.31 billion (US ), compared with$334.2 million RMB2.31 billion in the prior year period. - The number of active customers[3] for the first quarter of 2026 increased by
0.9% year over year to 41.7 million from 41.3 million in the prior year period. - Total orders[4] for the first quarter of 2026 increased by
3.2% year over year to 172.6 million from 167.2 million in the prior year period.
Mr. Eric Shen, Chairman and Chief Executive Officer of Vipshop, stated, "Our first-quarter performance was driven by strong apparel sales, supported by a successful Chinese New Year holiday when consumers responded enthusiastically to our seasonal, value-for-money collections. Our SVIP customer base achieved solid growth in both number and contribution, reflecting our long-standing appeal to high-value consumers. Alongside these results, we have made steady progress across our merchandising portfolio, customer engagement, and AI integration, all of which are helping to further leverage our off-price retail model for growth. With continued dedication to the brand-discount space, we remain confident in our ability to deliver sustainable, profitable growth over the long term."
Mr. Mark Wang, Chief Financial Officer of Vipshop, further commented, "We delivered an in-line quarter, reflecting a pull-forward of demand around the Chinese New Year, which concentrated activity in the first two months. Margins remained healthy and stable, supported by a stronger mix of higher-margin categories and disciplined operations. In April, we completed our annual dividend payout, and remain committed to delivering on our full-year shareholder return promises. With a solid financial position and consistent execution, we are well positioned to fund our strategic initiatives and business growth, while driving value for our shareholders."
First Quarter 2026 Financial Results
REVENUES
Total net revenues for the first quarter of 2026 increased by
GROSS PROFIT
Gross profit for the first quarter of 2026 increased by
OPERATING EXPENSES
Total operating expenses for the first quarter of 2026 were
- Fulfillment expenses for the first quarter of 2026 were
RMB2.0 billion (US ), compared with$296.7 million RMB1.9 billion in the prior year period. As a percentage of total net revenues, fulfillment expenses for the first quarter of 2026 were7.7% , compared with7.2% in the prior year period. - Marketing expenses for the first quarter of 2026 decreased by
1.8% year over year toRMB719.3 million (US ) from$104.3 million RMB732.1 million in the prior year period. As a percentage of total net revenues, marketing expenses for the first quarter of 2026 decreased to2.7% from2.8% in the prior year period. - Technology and content expenses for the first quarter of 2026 decreased by
0.2% year over year toRMB448.2 million (US ) from$65.0 million RMB449.1 million in the prior year period. As a percentage of total net revenues, technology and content expenses for the first quarter of 2026 was1.7% , which stayed flat as compared with that in the prior year period. - General and administrative expenses for the first quarter of 2026 were
RMB950.5 million (US ), compared with$137.8 million RMB950.8 million in the prior year period. As a percentage of total net revenues, general and administrative expenses for the first quarter of 2026 was3.6% , which stayed flat as compared with that in the prior year period.
INCOME FROM OPERATIONS
Income from operations for the first quarter of 2026 increased by
Non-GAAP income from operations[5] for the first quarter of 2026, which excluded share-based compensation expenses, increased by
NET INCOME
Net income attributable to Vipshop's shareholders for the first quarter of 2026 increased by
Non-GAAP net income attributable to Vipshop's shareholders for the first quarter of 2026, which excluded (i) share-based compensation expenses, (ii) investment loss (gain) and revaluation of investments excluding dividends, (iii) reconciling items on the share of equity method investments, and (iv) tax effects on non-GAAP adjustments, was
For the quarter ended March 31, 2026, the Company's weighted average number of ADSs used in computing diluted income per ADS was 492,729,110.
BALANCE SHEET AND CASH FLOW
As of March 31, 2026, the Company had cash and cash equivalents and restricted cash of
For the quarter ended March 31, 2026, net cash generated from operating activities was
For the three months ended | |||
March 31,
| March 31,
| March 31,
| |
Net cash (used in) generated from operating | (1,030,275) | 1,957,468 | 283,773 |
Reconciling items: | |||
Net impact from internet financing activities[11] | (74,740) | 95,315 | 13,818 |
Capital expenditures | (680,205) | (438,378) | (63,551) |
Free cash (outflow) inflow | (1,785,220) | 1,614,405 | 234,040 |
For the trailing twelve months ended | |||
March 31, RMB'000 | March 31, RMB'000 | March 31, US$'000 | |
Net cash generated from operating activities | 8,659,431 | 10,441,988 | 1,513,770 |
Reconciling items: | |||
Net impact from internet financing activities | 44,016 | 134,981 | 19,568 |
Capital expenditures | (3,530,728) | (1,824,710) | (264,527) |
Free cash inflow | 5,172,719 | 8,752,259 | 1,268,811 |
Business Outlook
For the second quarter of 2026, the Company expects its total net revenues to be between
Exchange Rate
The Company's business is primarily conducted in
Conference Call Information
The Company will hold a conference call on Thursday, May 21, 2026 at 7:30 am
All participants wishing to join the conference call must pre-register online using the link provided below.
Registration Link:
https://register-conf.media-server.com/register/BI71549415d6954eecad77793367ea5b63
Once pre-registration has been completed, each participant will receive dial-in numbers and a unique access PIN via email. To join the conference, participants should use the dial-in details followed by the PIN code.
A live webcast of the earnings conference call can be accessed at https://edge.media-server.com/mmc/p/tqxh35wg. An archived webcast will be available at the Company's investor relations website at http://ir.vip.com.
About Vipshop Holdings Limited
Vipshop Holdings Limited is a leading off-price retailer in
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the
Use of Non-GAAP Financial Measures
The condensed consolidated financial information is derived from the Company's unaudited interim condensed consolidated financial statements prepared in conformity with accounting principles generally accepted in
The presentation of these non-GAAP financial measures is not intended to be considered in isolation from, or as a substitute for, the financial information prepared and presented in accordance with
Investor Relations Contact
Tel: +86 (20) 2233-0732
Email: IR@vipshop.com
[1] "Gross merchandise value (GMV)" is defined as the total value of all products and services sold through the Company's online channels, Shan Shan Outlets (including Vipshop Outlet REIT operated and managed by Shan Shan Outlets), and other Vipshop offline stores during the given period, including the Company's Vipshop App mobile application, vip.com website, Vipshop WeChat Mini-Program, online stores that are operated at third-party platforms, Shan Shan Outlets and its corresponding Vipshop Outlet REIT, as well as Vipshop offline stores, which were fulfilled by either the Company or its third-party merchants, regardless of whether or not the goods were delivered or returned. GMV includes shipping charges paid by buyers to sellers. Out of prudence, the Company does not consider products or services to be sold if the orders were placed and canceled pre-shipment and only included orders that left the Company's or other third-party vendors' warehouses. |
[2] Non-GAAP net income attributable to Vipshop's shareholders is a non-GAAP financial measure, which, for the periods presented in this press release, is defined as net income attributable to Vipshop's shareholders excluding (i) share-based compensation expenses, (ii) investment loss (gain) and revaluation of investments excluding dividends, (iii) reconciling items on the share of equity method investments, and (iv) tax effects on non-GAAP adjustments. |
[3] "Active customers" is defined as registered members who have purchased from the Company's Vipshop mobile app, vip.com website and Vipshop WeChat Mini-Program at least once during the relevant period. |
[4] "Total orders" is defined as the total number of orders placed during the given period, including the orders for products and services sold through the Company's online channels, including the Company's Vipshop App mobile application, vip.com website, Vipshop WeChat Mini-Program, online stores that are operated at third-party platforms (excluding, for the avoidance of doubt, orders from the Company's offline stores and outlets), net of orders returned. |
[5] Non-GAAP income from operations is a non-GAAP financial measure, which is defined as income from operations excluding share-based compensation expenses. |
[6] Non-GAAP operating margin is a non-GAAP financial measure, which is defined as non-GAAP income from operations as a percentage of total net revenues. |
[7] "ADS" means American depositary share, each of which represents 0.2 Class A ordinary share. |
[8] Non-GAAP net margin attributable to Vipshop's shareholders is a non-GAAP financial measure, which is defined as non-GAAP net income attributable to Vipshop's shareholders, as a percentage of total net revenues. |
[9] Non-GAAP net income attributable to Vipshop's shareholders per diluted ADS is a non-GAAP financial measure, which is defined as non-GAAP net income attributable to Vipshop's shareholders, divided by the weighted average number of diluted ADSs outstanding for computing diluted earnings per ADS. |
[10] Free cash flow is a non-GAAP financial measure, which is defined as net cash from operating activities adding back the impact from internet financing activities and less capital expenditures, which include purchase and deposits of property and equipment and land use rights. |
[11] Net impact from internet financing activities represents net cash flow relating to the Company's financial products, which are primarily consumer financing and supplier financing that the Company provides to its customers and suppliers. |
Vipshop Holdings Limited | |||
Unaudited Condensed Consolidated Statements of Income and Comprehensive Income | |||
(In thousands, except for share and per share data) | |||
Three Months Ended | |||
March 31,2025 | March 31,2026 | March 31,2026 | |
RMB'000 | RMB'000 | USD'000 | |
Product revenues | 24,293,121 | 24,331,594 | 3,527,340 |
Other revenues (1) | 1,975,422 | 2,242,915 | 325,154 |
Total net revenues | 26,268,543 | 26,574,509 | 3,852,494 |
Cost of revenues | (20,186,333) | (20,079,359) | (2,910,896) |
Gross profit | 6,082,210 | 6,495,150 | 941,598 |
Operating expenses: | |||
Fulfillment expenses (2) | (1,889,954) | (2,046,921) | (296,741) |
Marketing expenses | (732,148) | (719,311) | (104,278) |
Technology and content expenses | (449,071) | (448,211) | (64,977) |
General and administrative expenses | (950,795) | (950,456) | (137,787) |
Total operating expenses | (4,021,968) | (4,164,899) | (603,783) |
Other operating income | 216,556 | 167,518 | 24,285 |
Income from operations | 2,276,798 | 2,497,769 | 362,100 |
Investment (loss) gain and revaluation of investments | (37,459) | 51,183 | 7,420 |
Interest expense | (10,240) | (29,911) | (4,336) |
Interest income | 222,950 | 180,023 | 26,098 |
Exchange loss | (12,936) | (18,812) | (2,727) |
Income before income tax expense and share of income of equity | 2,439,113 | 2,680,252 | 388,555 |
Income tax expenses | (507,667) | (519,290) | (75,281) |
Share of income of equity method investees | 48,865 | 102,523 | 14,863 |
Net income | 1,980,311 | 2,263,485 | 328,137 |
Net income attributable to non-controlling interests | (37,466) | (57,177) | (8,289) |
Net income attributable to Vipshop's shareholders | 1,942,845 | 2,206,308 | 319,848 |
Shares used in calculating earnings per share (3): | |||
Weighted average number of Class A and Class B ordinary shares: | |||
—Basic | 102,682,285 | 96,026,819 | 96,026,819 |
—Diluted | 104,315,110 | 98,545,822 | 98,545,822 |
Net earnings per Class A and Class B ordinary share | |||
Net income attributable to Vipshop's shareholders——Basic | 18.92 | 22.98 | 3.33 |
Net income attributable to Vipshop's shareholders——Diluted | 18.62 | 22.39 | 3.25 |
Net earnings per ADS (1 ordinary share equals to 5 ADSs) | |||
Net income attributable to Vipshop's shareholders——Basic | 3.78 | 4.60 | 0.67 |
Net income attributable to Vipshop's shareholders——Diluted | 3.72 | 4.48 | 0.65 |
| (1) Other revenues primarily consist of product promotion and online advertising revenues, lease income mainly earned from the Shan Shan | |||
| (2) Fulfillment expenses include shipping and handling expenses, which amounted | |||
| (3) Authorized share capital is re-classified and re-designated into Class A ordinary shares and Class B ordinary shares, with each Class A | |||
Three Months Ended | |||
March 31,2025 | March 31,2026 | March 31,2026 | |
RMB'000 | RMB'000 | USD'000 | |
Share-based compensation expenses are included in the operating | |||
Fulfillment expenses | 20,177 | 15,086 | 2,187 |
Marketing expenses | 7,042 | 12,106 | 1,755 |
Technology and content expenses | 88,845 | 68,363 | 9,911 |
General and administrative expenses | 234,539 | 125,090 | 18,134 |
Total | 350,603 | 220,645 | 31,987 |
Vipshop Holdings Limited | |||
Unaudited Condensed Consolidated Balance Sheets | |||
(In thousands, except for share and per share data) | |||
December 31,2025 | March 31,2026 | March 31,2026 | |
RMB'000 | RMB'000 | USD'000 | |
ASSETS | |||
CURRENT ASSETS | |||
Cash and cash equivalents | 22,990,435 | 27,659,303 | 4,009,757 |
Restricted cash | 1,132,729 | 607,548 | 88,076 |
Short term investments | 5,777,222 | 2,684,723 | 389,203 |
Accounts receivable, net | 889,220 | 734,404 | 106,466 |
Amounts due from related parties,net | 762,781 | 732,386 | 106,174 |
Other receivables and prepayments,net | 2,860,301 | 2,951,043 | 427,811 |
Loan receivables,net | 9,166 | 9,624 | 1,395 |
Inventories | 5,153,413 | 4,621,665 | 670,001 |
Total current assets | 39,575,267 | 40,000,696 | 5,798,883 |
NON-CURRENT ASSETS | |||
Property and equipment, net | 18,311,533 | 17,954,802 | 2,602,900 |
Deposits for property and equipment | 6,420 | 8,016 | 1,162 |
Land use rights, net | 10,426,682 | 10,429,432 | 1,511,950 |
Intangible assets, net | 324,067 | 323,122 | 46,843 |
Investment in equity method investees | 3,136,784 | 3,382,701 | 490,389 |
Other investments | 4,800,356 | 4,842,845 | 702,065 |
Held-to-maturity securities | - | 802,366 | 116,319 |
Other long-term assets | 351,085 | 242,204 | 35,112 |
Goodwill | 755,213 | 755,213 | 109,483 |
Deferred tax assets, net | 757,113 | 781,454 | 113,287 |
Operating lease right-of-use assets | 398,798 | 402,568 | 58,360 |
Total non-current assets | 39,268,051 | 39,924,723 | 5,787,870 |
TOTAL ASSETS | 78,843,318 | 79,925,419 | 11,586,753 |
LIABILITIES AND EQUITY | |||
CURRENT LIABILITIES | |||
Short term loans | 5,844,620 | 6,559,600 | 950,942 |
Accounts payable | 12,536,639 | 11,403,704 | 1,653,190 |
Advance from customers | 1,890,586 | 1,694,602 | 245,666 |
Accrued expenses and other current liabilities | 9,941,146 | 11,350,723 | 1,645,509 |
Amounts due to related parties | 101,782 | 103,585 | 15,017 |
Deferred income | 520,853 | 533,532 | 77,346 |
Operating lease liabilities | 47,458 | 44,436 | 6,442 |
Total current liabilities | 30,883,084 | 31,690,182 | 4,594,112 |
NON-CURRENT LIABILITIES | |||
Deferred tax liability | 707,322 | 763,187 | 110,639 |
Deferred income-non current | 2,252,797 | 2,234,957 | 324,001 |
Operating lease liabilities | 556,951 | 564,338 | 81,812 |
Total non-current liabilities | 3,517,070 | 3,562,482 | 516,452 |
TOTAL LIABILITIES | 34,400,154 | 35,252,664 | 5,110,564 |
EQUITY: | |||
Total shareholders' equity ( | 41,004,749 | 41,248,690 | 5,979,804 |
Non-controlling interests | 3,438,415 | 3,424,065 | 496,385 |
Total shareholders' equity | 44,443,164 | 44,672,755 | 6,476,189 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 78,843,318 | 79,925,419 | 11,586,753 |
(4) The number of treasury stock as of March 31, 2026 was 10.8 million, all of which are Class A ordinary shares repurchased under the share | |||
Vipshop Holdings Limited | |||
Reconciliations of GAAP and Non-GAAP Results | |||
Three Months Ended | |||
March 31,2025 | March 31,2026 | March 31,2026 | |
RMB'000 | RMB'000 | USD'000 | |
Income from operations | 2,276,798 | 2,497,769 | 362,100 |
Share-based compensation expenses | 350,603 | 220,645 | 31,987 |
Non-GAAP income from operations | 2,627,401 | 2,718,414 | 394,087 |
Net income attributable to Vipshop's shareholders | 1,942,845 | 2,206,308 | 319,848 |
Share-based compensation expenses | 350,603 | 220,645 | 31,987 |
Investment loss (gain) and revaluation of investments excluding | 37,459 | (51,183) | (7,420) |
Reconciling items on the share of equity method investments(5) | 61 | (38,362) | (5,561) |
Tax effects on non-GAAP adjustments | (22,583) | (31,785) | (4,608) |
Non-GAAP net income attributable to Vipshop's shareholders | 2,308,385 | 2,305,623 | 334,246 |
| (5) To exclude the GAAP to non-GAAP reconciling items relating to investment gain and revaluation of investments on the share of equity | |||
Shares used in calculating earnings per share: | |||
Weighted average number of Class A and Class B ordinary shares: | |||
—Basic | 102,682,285 | 96,026,819 | 96,026,819 |
—Diluted | 104,315,110 | 98,545,822 | 98,545,822 |
Non-GAAP net income per Class A and Class B ordinary share | |||
Non-GAAP net income attributable to Vipshop's shareholders—— | 22.48 | 24.01 | 3.48 |
Non-GAAP net income attributable to Vipshop's shareholders—— | 22.13 | 23.40 | 3.39 |
Non-GAAP net income per ADS (1 ordinary share equal to 5 ADSs) | |||
Non-GAAP net income attributable to Vipshop's shareholders—— | 4.50 | 4.80 | 0.70 |
Non-GAAP net income attributable to Vipshop's shareholders—— | 4.43 | 4.68 | 0.68 |
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SOURCE Vipshop Holdings Limited