Temu Parent PDD Holdings Reports 7% Revenue Growth Despite Tariffs

Financial Performance - PDD Holdings' revenue grew by 7% year over year, reaching approximately 104 billion yuan ($14.5 billion) in the second quarter [2] - The company's operating profit fell by 21% year over year during the same period [2] - This revenue growth was reported as the slowest pace in years, although it exceeded analysts' expectations for the first time in four quarters [3] Strategic Focus - Executives emphasized that PDD Holdings is prioritizing long-term impact over short-term results, indicating a commitment to sustained investments [3] - The company is investing in merchant support initiatives, which may continue to affect short-term profitability [3] Market Challenges - PDD Holdings faces challenges from fluctuating Chinese consumption, escalating U.S. tariffs, and the elimination of the U.S. de minimis tax loophole that previously benefited Temu and other discount retailers [4] - Following the end of the de minimis exemption on May 2, Temu experienced a significant drop of 58% in daily U.S. visitors to its eCommerce platform [5] - Temu has paused and then resumed U.S. advertising spending while attempting to attract third-party sellers with lower fees and incentives [5]