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Vipshop(VIPS) - 2025 Q4 - Earnings Call Transcript

2026-02-26 13:00

Financial Data and Key Metrics Changes - Total net revenues for Q4 2025 were RMB 32.5 billion, a decrease from RMB 33.2 billion in the prior year period, representing a year-over-year decline of 2.1% [14] - Gross profit for Q4 2025 was RMB 7.4 billion, down from RMB 7.6 billion in the prior year, with a gross margin of 22.9%, slightly lower than 23.0% in the previous year [14] - For the full year 2025, total net revenues were RMB 105.9 billion, compared to RMB 108.4 billion in the prior year, indicating a decline of 2.3% [18] - Net income attributable to Vipshop shareholders increased by 5.8% year-over-year to RMB 2.6 billion in Q4 2025, with a net margin of 8.0%, up from 7.4% in the prior year [17] Business Line Data and Key Metrics Changes - The Made for Vipshop line saw sales growth of over 40%, accounting for 5% of online apparel sales in 2025 [6] - Active Super VIP (SVIP) members grew by 11% to 9.8 million, contributing 52% of online spending [8] Market Data and Key Metrics Changes - The company experienced a deceleration in December sales due to weak winter apparel demand and delayed holiday shopping caused by a later Spring Festival [4] - Consumer activity showed signs of recovery in early 2026, driven by New Year shopping, with expectations of 0% to 5% revenue growth for Q1 2026 [25][21] Company Strategy and Development Direction - The company implemented a strategic reorganization of merchandising and customer engagement teams to enhance agility and long-term competitiveness [5] - Focus on building a stronger portfolio of branded products and enhancing customer relevance through data-driven insights [6] - The company aims to deepen its offline presence through the expansion of Shan Shan outlets, which have proven to be a stable revenue stream [34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering sustainable profitability growth in 2026 and beyond, despite a dynamic macro environment [11] - The company remains focused on high-quality growth and expects to stabilize margins while making efforts to outperform in terms of margins for 2026 [26] Other Important Information - The company returned a total of $944 million to shareholders through dividends and share repurchases in 2025, with plans to maintain this momentum in 2026 [13] - Cash and cash equivalents as of December 31, 2025, were RMB 24.1 billion, with short-term investments of RMB 5.8 billion [18] Q&A Session Summary Question: Impact of late Spring Festival on business performance and recovery signs - Management noted that Q4 sales were impacted by warm weather and a late Spring Festival, but consumer activity has picked up in early 2026, supporting guidance for revenue growth [25] Question: Margin outlook for 2026 - Management expects margins to stabilize and aims to outperform in terms of margins for 2026, focusing on sustainable, profitable growth [26] Question: User growth expectations for 2026 and demand for apparel versus non-apparel - Management aims to regrow customer numbers in 2026, with a focus on providing value across categories to drive repeat business [31] Question: Resilience of the business model against e-commerce trends and offline growth - Management believes the off-price model will remain competitive and is expanding the offline business through Shan Shan outlets, which are performing well [34]