Vipshop Updates Business Outlook for Fourth Quarter 2021

Rhea-AI Summary

Vipshop Holdings Limited (NYSE: VIPS), a prominent online discount retailer in China, revised its business outlook for Q4 2021. The company now anticipates total net revenue ranging from RMB34.0 billion to RMB35.8 billion, indicating a year-over-year decrease of approximately 5% to 0%. This update contrasts with the previous forecast of RMB35.8 billion to RMB37.6 billion, which hinted at a growth rate of 0% to 5%. These revisions reflect changes in market and operational conditions for the company.

Positive

• None.

Negative

• Revised revenue forecast indicates a year-over-year decrease of approximately 5% to 0%, down from a previously expected growth of 0% to 5%.
• New revenue outlook is lower than prior projections, signaling potential challenges in business performance.

GUANGZHOU, China, Dec. 27, 2021 /PRNewswire/ -- Vipshop Holdings Limited (NYSE: VIPS), a leading online discount retailer for brands in China ("Vipshop" or the "Company"), today provided updated business outlook for the fourth quarter of 2021.

The Company now expects its total net revenue for the fourth quarter of 2021 to be between RMB34.0 billion and RMB35.8 billion, representing a year-over-year decrease rate of approximately 5% to 0%. This is revised from the previous outlook of total net revenue between RMB35.8 billion and RMB37.6 billion, representing a year-over-year growth rate of approximately 0% to 5%. These forecasts reflect the Company's latest view on the market and operational conditions, which is subject to change.

About Vipshop Holdings Limited

Vipshop Holdings Limited is a leading online discount retailer for brands in China. Vipshop offers high quality and popular branded products to consumers throughout China at a significant discount to retail prices. Since it was founded in August 2008, the Company has rapidly built a sizeable and growing base of customers and brand partners. For more information, please visit https://ir.vip.com/.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Vipshop may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Vipshop's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Vipshop's goals and strategies; Vipshop's future business development, results of operations and financial condition; the expected growth of the online discount retail market in China; Vipshop's ability to attract customers and brand partners and further enhance its brand recognition; Vipshop's expectations regarding demand for and market acceptance of flash sales products and services; competition in the discount retail industry; the potential impact of the COVID-19 to Vipshop's business operations and the economy in China and elsewhere generally; fluctuations in general economic and business conditions in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Vipshop's filings with the SEC. All information provided in this press release is as of the date of this press release, and Vipshop does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

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SOURCE Vipshop Holdings Limited

FAQ

What is the updated revenue forecast for Vipshop Holdings (VIPS) in Q4 2021?

Vipshop expects total net revenue for Q4 2021 to be between RMB34.0 billion and RMB35.8 billion.

How does the new revenue outlook for VIPS compare to previous estimates?

The revised outlook represents a decrease from the previous estimate of RMB35.8 billion to RMB37.6 billion, which implied a growth rate.

What is the expected year-over-year revenue change for VIPS in Q4 2021?

The year-over-year change is expected to be approximately between 5% to 0%, indicating a potential decline.