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VIPShop Holdings (VIPS) Earnings: Investors Aren’t Buying It

VIPShop Holdings (VIPS) didn’t do half bad with its second quarter earnings report released on Tuesday, but investors didn’t seem all too pleased.

The stock took a dive in the wake of its Tuesday morning earnings announcement, even though its numbers were rather strong. It was trading down about 10% for the day one hour ahead of market close.

Vishop Holdings vips

VIPShop's net revenues increase 77.6% YOY

VIPShop reported a 77.6% year-over-year increase in net revenues to $1.45 billion (Rmb9.02 billion), 1% above Bloomberg consensus. Gross profit climbed by 78.6% to $363 million (Rmb2.3 billion), and earnings per average diluted share were 13% of consensus. The company issued better-than-expected third quarter guidance as well.

Analysts, by and large, took a rather positive view of the Chinese e-commerce company’s second quarter numbers.

“The 2Q2015 result and 3Q15 guidance are both better than expected, and we believe 3Q guidance could be conservative,” analysts at Barclays PLC (NYSE:BCS) (LON:BARC) wrote in a first look note on Tuesday.

In a separate note, they called the period “a somewhat relieving quarter” for VIPShop. They maintained their rating on the stock at overweight but...


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