Vipshop Holdings Limited (VIPS) Q3 2025 Earnings Call Transcript

Total net revenues Increased by 3.4% year-over-year to RMB 21.4 billion from RMB 20.7 billion in the prior year period. This growth was attributed to disciplined growth investments and value-driven opportunities in merchandising expansion, consumer-facing marketing, and AI-centered technology advancements.

Gross profit RMB 4.9 billion compared with RMB 5.0 billion in the prior year period, showing a slight decline. Gross margin was 23.0% compared with 24.0% in the prior year period, reflecting a decrease in profitability.

Total operating expenses RMB 3.9 billion compared with RMB 3.8 billion in the prior year period. As a percentage of total net revenues, total operating expenses were 18.5% compared with 18.2% in the prior year period, indicating a slight increase in operational costs.

Fulfillment expenses RMB 1.9 billion compared with RMB 1.7 billion in the prior year period. As a percentage of total net revenues, fulfillment expenses were 8.7% compared with 8.4% in the prior year period, showing an increase due to higher operational costs.

Marketing expenses RMB 667.2 million compared with RMB 617.8 million in the prior year period. As a percentage of total net revenues, marketing expenses were 3.1% compared with 3.0% in the prior year period, reflecting increased spending on marketing initiatives.

Technology and content expenses RMB 438.6 million compared with RMB 454.2 million in the prior year period. As a percentage of total net revenues, technology and content expenses were 2.1% compared with 2.2% in the prior year period, showing a slight decrease in technology-related spending.

General and administrative expenses RMB 984.6 million compared with RMB 957.8 million in the prior year period. As a percentage of total net revenues, general and administrative expenses were 4.6%, which remained stable compared to the prior year period.

Income from operations RMB 1.26 billion compared with RMB 1.33 billion in the prior year period. Operating margin was 5.9% compared with 6.4% in the prior year period, indicating a decline in operational profitability.

Non-GAAP income from operations RMB 1.6 billion compared with RMB 1.7 billion in the prior year period. Non-GAAP operating margin was 7.5% compared with 8.2% in the prior year period, showing a decrease in adjusted operational profitability.

Net income attributable to Vipshop shareholders Increased by 16.8% year-over-year to RMB 1.2 billion from RMB 1.0 billion in the prior year period. Net margin attributable to Vipshop shareholders increased to 5.7% from 5.1% in the prior year period, driven by improved cost efficiency and strategic reinvestments.

Non-GAAP net income attributable to Vipshop shareholders Increased by 14.6% year-over-year to RMB 1.5 billion from RMB 1.3 billion in the prior year period. Non-GAAP net margin attributable to Vipshop shareholders increased to 7.0% from 6.3% in the prior year period, reflecting strong adjusted profitability.

Cash and cash equivalents and restricted cash RMB 25.1 billion as of September 30, 2025, along with short-term investments of RMB 5.9 billion, indicating a strong liquidity position.