Core Viewpoint - Vipshop Holdings Limited plans to release its fourth quarter and full year 2024 financial results on February 21, 2025, before the US market opens [1] Group 1: Financial Results Announcement - The financial results will be discussed in a conference call scheduled for February 21, 2025, at 7:00 am US Eastern Time and 8:00 pm Beijing Time [1] - Participants must pre-register online to join the conference call [2] - A live webcast of the earnings conference call will be available, with an archived version accessible later on the company's investor relations website [3] Group 2: Company Overview - Vipshop Holdings Limited is a leading online discount retailer for brands in China, offering high-quality branded products at significant discounts [4] - The company has established a growing customer base and brand partnerships since its founding in August 2008 [4]

Core Viewpoint - The article emphasizes the importance of value investing as a strategy to identify strong stocks, particularly highlighting Vipshop (VIPS) as a notable candidate due to its favorable metrics and earnings outlook [2][3][7]. Group 1: Value Metrics - Vipshop (VIPS) has a Zacks Rank of 2 (Buy) and an A grade in the Value category, indicating it is among the strongest value stocks currently available [3]. - The PEG ratio for VIPS is 1.33, significantly lower than the industry average of 3.54, suggesting it is undervalued relative to its expected earnings growth [4]. - The P/S ratio for VIPS stands at 0.48, compared to the industry average of 1.16, further indicating its undervaluation based on sales performance [5]. - The P/CF ratio for VIPS is 5.75, which is attractive when compared to the industry's average of 18.18, highlighting its strong cash flow outlook [6]. Group 2: Earnings Outlook - The combination of VIPS's favorable valuation metrics and its strong earnings outlook positions it as one of the market's strongest value stocks [7].

Core Viewpoint - Vipshop Holdings Limited (VIPS) is showing potential as a strong investment opportunity due to its recent technical indicators and positive earnings revisions [1][2][3] Technical Analysis - VIPS has recently crossed above the 200-day moving average, indicating a long-term bullish trend [1] - Over the past four weeks, VIPS has gained 5.7%, suggesting positive momentum [2] Earnings Estimates - There has been one upward revision in earnings estimates for the current fiscal year, with no downward revisions, indicating positive sentiment among analysts [3] - The consensus estimate for VIPS has also increased, further supporting the bullish outlook [3] Market Position - VIPS is currently ranked a Zacks Rank 2 (Buy), which is a strong indication that the stock could continue to rise [2]

Core Insights - Vipshop Holdings Limited (NYSE: VIPS) has demonstrated consistent free cash flow (FCF) growth over the years and is well-positioned to capitalize on recent stimulus measures in China [1] - The company has shown significant business expansion by increasing its workforce substantially [1] Company Summary - Vipshop has a strong track record of FCF growth, indicating financial health and operational efficiency [1] - The recent hiring surge suggests a strategic move to enhance operational capacity and support anticipated growth [1] Industry Context - The company is likely to benefit from the broader economic stimulus in China, which may lead to increased consumer spending and demand for its services [1]

Core Insights - Vipshop (NYSE: VIPS) has seen a stock price decline of nearly 20% since the initiation of coverage in December 2023, significantly underperforming the market due to deteriorating business fundamentals starting from Q1 [1] Company Overview - The company operates in the e-commerce sector, focusing on discount retailing, and has been facing challenges that have impacted its stock performance [1] Market Performance - The stock's performance is characterized by a substantial drop attributed to weakening business fundamentals, indicating potential issues in revenue generation or market competitiveness [1]

Investment Rating - The report maintains an "Outperform" rating for the company [4][6][17]. Core Insights - The company's revenue for Q3 2024 was 20.7 billion RMB, a year-over-year decrease of 9.2%, primarily due to weak demand and intensified competition [2][9]. - Product revenue was 18.9 billion RMB, down 10.2% year-over-year, with the wearables category showing negative growth [2][9]. - Other revenue increased by 4% year-over-year to 1.8 billion RMB, driven mainly by the Shanshan Outlet stores [2][9]. - The management has guided for Q4 2024 revenue growth to be in the range of -10% to -5%, with expectations of continued weak consumer trends into 2025 [2][9]. - The company's GMV remained flat year-over-year at 40.1 billion RMB, with active buyers decreasing by 7% to 39.6 million [2][9]. - The SuperVIP membership segment grew by 11% year-over-year, accounting for 49% of the company's online transaction value [2][9]. Financial Performance - Non-GAAP net profit for the quarter was 1.3 billion RMB, down 29% year-over-year, with a net profit margin decreasing from 8.1% to 6.3% [3][10]. - Adjusted operating profit fell by 18% year-over-year, with an adjusted operating profit margin of 8.2% [3][10]. - The management announced a stock buyback of 275 million USD in Q3, with an additional 553 million USD remaining in the current buyback plan [3][10]. Financial Forecasts - The revenue forecasts for 2024-2026 have been revised down to 107.4 billion, 107.9 billion, and 114.4 billion RMB, reflecting adjustments of -1.4%, -4.2%, and -4.3% respectively [4][17]. - Adjusted net profit forecasts for the same period are set at 8.6 billion, 8.6 billion, and 9.0 billion RMB, with adjustments of -4.0%, -11.1%, and -12.9% respectively [4][17]. - The company's stock price corresponds to a PE ratio of 6 for 2024, with a target price maintained at 14-15 USD, indicating an upside potential of 6%-14% [4][17].

Investment Rating - The report maintains a "Hold" rating for the company with a target price adjusted to $14, reflecting a potential upside of 6% from the current price of $13.26 [3][6]. Core Insights - The company's Q3 2024 revenue was RMB 20.7 billion, a year-on-year decline of 9.2%, which aligns with expectations and prior guidance, primarily due to weak industry demand. The gross margin improved to 24.0%, with an adjusted net margin of 6.3% [2]. - The company completed a $275 million share buyback in Q3 2024 and approved a new $1 billion buyback plan, indicating a commitment to enhancing long-term shareholder returns by allocating over 75% of adjusted net profit for 2025 towards buybacks or dividends [2]. - The report highlights a cautious outlook for Q4 2024, projecting revenue between RMB 31.2 billion and RMB 32.9 billion, which corresponds to a year-on-year decline of approximately 10% to 5% [3]. Financial Projections - The updated financial model forecasts the following revenue and profit figures (in RMB million): - FY24E Revenue: 107,103 - FY25E Revenue: 107,647 - Adjusted Net Profit FY24E: 8,656 - Adjusted Net Profit FY25E: 8,815 - Target PE for FY24E: 6.2x, FY25E: 6.0x [5].

Financial Data and Key Metrics - Total net revenue for Q3 2024 was RMB20.7 billion, a decrease from RMB22.8 billion in the prior year period [20] - Gross profit was RMB5.0 billion, compared to RMB5.4 billion in the prior year period, with gross margin increasing to 24.0% from 23.6% [20] - Non-GAAP net income attributable to Vipshop's shareholders was RMB1.3 billion, down from RMB1.8 billion in the prior year period, with a non-GAAP net margin of 6.3% compared to 8.1% [23] - Cash and cash equivalents, including restricted cash, stood at RMB22.5 billion as of September 30, 2024, with short-term investments of RMB1.6 billion [24] Business Line Performance - Active SVIP customers grew by 11% year-over-year, contributing to 49% of online spending [7] - Sales from the "Made for VIP" customized product line showed solid growth, with more than half of sales coming from SVIP and other high-value customers [11] - Categories like sports and outdoor goods, and homeware showed strength despite broader market weakness [10] Market Performance - The company observed softer results in discretionary categories due to consumer headwinds, but SVIP membership growth remained strong [7] - The company is focusing on providing value through everyday low prices and targeted incentives for family shoppers [12] Strategic Direction and Industry Competition - The company is emphasizing merchandising capabilities to drive long-term growth, with a focus on responding to changing customer behaviors [9] - Investments in technology, including AI, are being made to improve search and recommendation relevancy, aiming to enhance customer engagement and efficiency [13] - The company is planning to maintain a disciplined approach to cost and expense management, with a focus on growing profit dollars [29] Management Commentary on Operating Environment and Future Outlook - Management noted that consumer sentiment may have bottomed out following recent government stimulus, but the environment remains rational with customers showing signs of being stretched [29] - The company expects Q4 2024 total net revenues to be between RMB31.2 billion and RMB32.9 billion, representing a year-over-year decrease of approximately 10% to 5% [24] Other Important Information - The company repurchased nearly $500 million in shares in the first nine months of 2024, with $55.3 million remaining in the existing $1 billion share repurchase program [19] - A new two-year buyback program of up to $1 billion is in place, with plans to meet no less than 75% of full-year non-GAAP net income through share repurchases and dividend distributions in 2025 [19] Q&A Session Summary Question: Consumer sentiment and GMV trends - Management noted that October was strong due to early Double 11 promotions, but overall consumer sentiment remains rational with customers focusing on value and essentials [29] - The company expects the Q4 trend to continue into 2025, with efforts to return to GMV growth [29] Question: Double 11 performance and Q4 guidance - Double 11 GMV showed over 20% growth on a full-cycle basis, but the Q4 guidance is conservative due to weather factors and high base effects from the previous year [35] Question: Gross margin outlook and tax expenses - Q3 gross margin was 24%, driven by higher apparel contribution and other revenues, with Q4 expected to be marginally lower but within the 23% range [39][40] - Tax expenses increased due to the transfer of cash onshore to offshore for shareholder returns, with an effective tax rate expected to remain around 17% to 18% [41] Question: Product category performance and SVIP user behavior - Apparel saw a small decline in GMV, while standardized items had a larger decline, but the company is adjusting strategies to narrow losses [45] - SVIP customers grew by 11% year-over-year, with a small decline in ARPU primarily due to reduced frequency, but average ticket size remained stable [45] Question: SVIP ARPU decline and government trading subsidies - SVIP ARPU decline was attributed to reduced frequency, with efforts to increase engagement through enhanced membership privileges and events [49] - The company expects minimal benefit from government trading subsidies, as they primarily focus on apparel, which is not a key category for the subsidies [49]

Exhibit 99.1 Vipshop Reports Unaudited Third Quarter 2024 Financial Results Conference Call to Be Held at 7:30 A.M. U.S. Eastern Time on November 19, 2024 Guangzhou, China, November 19, 2024 — Vipshop Holdings Limited (NYSE: VIPS), a leading online discount retailer for brands in China ("Vipshop" or the "Company"), today announced its unaudited financial results for the quarter ended September 30, 2024. Third Quarter 2024 Highlights 1 • Total net revenues for the third quarter of 2024 were RMB20.7 billion ( ...

Core Viewpoint - Vipshop Holdings Limited reported a decline in financial performance for the third quarter of 2024, reflecting soft industry trends in discretionary categories, while maintaining profitability through disciplined financial management and strategic adjustments [2][3][4]. Financial Performance - Total net revenues for Q3 2024 were RMB20.7 billion (US$2.9 billion), down from RMB22.8 billion in the prior year [2][4]. - Gross profit for Q3 2024 was RMB5.0 billion (US$706.1 million), compared to RMB5.4 billion in the prior year [2][5]. - Net income attributable to shareholders for Q3 2024 was RMB1.0 billion (US$149.0 million), down from RMB1.2 billion in the prior year [2][11]. - Non-GAAP net income attributable to shareholders for Q3 2024 was RMB1.3 billion (US$186.8 million), compared to RMB1.8 billion in the prior year [2][12]. Customer Metrics - The number of active customers in Q3 2024 was 39.6 million, down from 42.3 million in the prior year [2]. - Total orders for Q3 2024 were 163.9 million, compared to 179.9 million in the prior year [2]. Operating Expenses - Total operating expenses for Q3 2024 decreased by 6.1% year over year to RMB3.8 billion (US$536.6 million) [6]. - Fulfillment expenses decreased by 2.0% year over year to RMB1.7 billion (US$247.3 million) [7]. - Marketing expenses decreased by 7.7% year over year to RMB617.8 million (US$88.0 million) [7]. Share Repurchase Program - The company repurchased US$275.0 million worth of shares during Q3 2024 and plans to initiate a new US$1.0 billion share repurchase program [3][16][17]. Business Outlook - For Q4 2024, the company expects total net revenues to be between RMB31.2 billion and RMB32.9 billion, representing a year-over-year decrease of approximately 10% to 5% [18].