Conference Call to Be Held at 7:30 A.M. U.S. Eastern Time on August 25, 2026

GUANGZHOU, China, Aug. 25, 2026 /PRNewswire/ -- Vipshop Holdings Limited $(VIPS)$, a leading off-price retailer in China ("Vipshop" or the "Company"), today announced its unaudited financial results for the quarter ended June 30, 2026.

Second Quarter 2026 Highlights

   -- Total net revenues for the second quarter of 2026 were RMB24.7 billion 
      (US$3.6 billion), compared with RMB25.8 billion in the prior year period. 
 
   -- GMV[1] for the second quarter of 2026 was RMB50.6 billion, compared with 
      RMB51.4 billion in the prior year period. 
 
   -- Gross profit for the second quarter of 2026 was RMB5.8 billion (US$848.1 
      million), compared with RMB6.1 billion in the prior year period. 
 
   -- Net income attributable to Vipshop's shareholders for the second quarter 
      of 2026 increased by 189.1% year over year to RMB4.3 billion (US$634.7 
      million) from RMB1.5 billion in the prior year period, primarily due to a 
      one-off investment gain of RMB5.79 billion from the listing of a 
      commercial REIT. 
 
   -- Non-GAAP net income attributable to Vipshop's shareholders[2] for the 
      second quarter of 2026 was RMB392.2 million (US$57.8 million), compared 
      with RMB2.1 billion in the prior year period, primarily due to a one-time 
      withholding tax adjustment relating to certain historical dividend 
      distributions. 
 
   -- The number of active customers[3] for the second quarter of 2026 was 42.3 
      million, compared with 43.5 million in the prior year period. 
 
   -- Total orders[4] for the second quarter of 2026 were 182.4 million, 
      compared with 193.0 million in the prior year period. 

Mr. Eric Shen, Chairman and Chief Executive Officer of Vipshop, stated, "We navigated a challenging consumer environment in the second quarter by staying disciplined to our core value proposition -- offering a curated selection of high-value branded products to our most loyal customers. The solid performance of our active SVIPs validated the enduring strength of our business model. Leveraging our proven foundation, we are actively strengthening our competitive moat by sharpening merchandising, elevating customer experience, and scaling AI across our operations. These focused initiatives position us firmly for sustainable, long-term growth."

Mr. Mark Wang, Chief Financial Officer of Vipshop, further commented, "In the second quarter, our top-line performance stayed within our guided range, reflecting disciplined execution amid subdued consumer demand. We maintained a steadfast focus on margin health, which helped preserve operating profitability. During the first half, we returned approximately US$400 million to shareholders through dividends and share repurchases, and we remain on track to meet our full-year shareholder return target. Supported by solid operating fundamentals and strong cash generation to reinvest strategically, we are confident in our path toward profitable, long-term growth."

Second Quarter 2026 Financial Results

REVENUES

Total net revenues for the second quarter of 2026 were RMB24.7 billion (US$3.6 billion), compared with RMB25.8 billion in the prior year period.

GROSS PROFIT

Gross profit for the second quarter of 2026 was RMB5.8 billion (US$848.1 million), compared with RMB6.1 billion in the prior year period. Gross margin for the second quarter of 2026 was 23.3%, compared with 23.5% in the prior year period.

OPERATING EXPENSES

Total operating expenses for the second quarter of 2026 decreased by 2.4% year over year to RMB4.5 billion (US$656.5 million) from RMB4.6 billion in the prior year period. As a percentage of total net revenues, total operating expenses for the second quarter of 2026 were 18.0%, compared with 17.7% in the prior year period.

   -- Fulfillment expenses for the second quarter of 2026 were RMB2.14 billion 
      (US$315.1 million), compared with RMB2.11 billion in the prior year 
      period. As a percentage of total net revenues, fulfillment expenses for 
      the second quarter of 2026 were 8.7%, compared with 8.2% in the prior 
      year period. 
 
   -- Marketing expenses for the second quarter of 2026 were RMB760.3 million 
      (US$112.1 million), compared with RMB715.9 million in the prior year 
      period. As a percentage of total net revenues, marketing expenses for the 
      second quarter of 2026 were 3.1%, compared with 2.8% in the prior year 
      period. 
 
   -- Technology and content expenses for the second quarter of 2026 were 
      RMB486.2 million (US$71.7 million), compared with RMB442.0 million in the 
      prior year period. As a percentage of total net revenues, technology and 
      content expenses for the second quarter of 2026 were 2.0%, compared with 
      1.7% in the prior year period. 
 
   -- General and administrative expenses for the second quarter of 2026 
      decreased by 17.5% year over year to RMB1.1 billion (US$157.7 million), 
      compared with RMB1.3 billion in the prior year period, primarily due to 
      higher share-based compensation expenses for Shan Shan Outlets recorded 
      in the prior year period. As a percentage of total net revenues, general 
      and administrative expenses for the second quarter of 2026 decreased to 
      4.3% from 5.0% in the prior year period. 

INCOME FROM OPERATIONS

Income from operations for the second quarter of 2026 was RMB1.5 billion (US$224.0 million), compared with RMB1.7 billion in the prior year period. Operating margin for the second quarter of 2026 was 6.2%, compared with 6.6% in the prior year period.

Non-GAAP income from operations([5]) for the second quarter of 2026, which excluded share-based compensation expenses, was RMB2.0 billion (US$295.7 million), compared with RMB2.4 billion in the prior year period. Non-GAAP operating margin([6]) for the second quarter of 2026 was 8.1%, compared with 9.3% in the prior year period.

INCOME TAX EXPENSES

Income Tax Expenses for the second quarter of 2026 were RMB3.3 billion (US$491.8 million), compared with RMB407.2 million in the prior year period. The increase was primarily driven by (i) an income tax expense of RMB1.63 billion relating to the one-off investment gain recognized by Shan Shan Commercial Group Co., Ltd., the original holder of the underlying assets, upon the issuance of a commercial REIT, and (ii) an accrued withholding tax expense of RMB1.56 billion reflecting the withholding tax treatments of historical dividend distributions from mainland China to Hong Kong regarding applicable policies on tax treaty benefits.

NET INCOME

Net income attributable to Vipshop's shareholders for the second quarter of 2026 increased by 189.1% year over year to RMB4.3 billion (US$634.7 million) from RMB1.5 billion in the prior year period, primarily due to a one-off investment gain of RMB5.79 billion from the listing of a commercial REIT. Net margin attributable to Vipshop's shareholders for the second quarter of 2026 increased to 17.4% from 5.8% in the prior year period. Net income attributable to Vipshop's shareholders per diluted ADS([7]) for the second quarter of 2026 increased to RMB8.82 (US$1.30) from RMB2.91 in the prior year period.

Non-GAAP net income attributable to Vipshop's shareholders for the second quarter of 2026, which excluded (i) share-based compensation expenses, (ii) impairment loss of investments, (iii) investment (gain) loss and revaluation of investments excluding dividends, (iv) reconciling items on the share of equity method investments, and (v) tax effects on non-GAAP adjustments, was RMB392.2 million (US$57.8 million), compared with RMB2.1 billion in the prior year period, primarily due to a one-time withholding tax adjustment relating to certain historical dividend distributions. Non-GAAP net margin attributable to Vipshop's shareholders([8]) for the second quarter of 2026 was 1.6%, compared with 8.0% in the prior year period. Non-GAAP net income attributable to Vipshop's shareholders per diluted ADS([9]) for the second quarter of 2026 was RMB0.80 (US$0.12), compared with RMB4.06 in the prior year period.

For the quarter ended June 30, 2026, the Company's weighted average number of ADSs used in computing diluted income per ADS was 488,098,800.

BALANCE SHEET AND CASH FLOW

As of June 30, 2026, the Company had cash and cash equivalents and restricted cash of RMB29.9 billion (US$4.4 billion) and short term investments of RMB3.6 billion (US$533.3 million).

For the quarter ended June 30, 2026, net cash used in operating activities was RMB374.7 million (US$55.2 million), and free cash flow([10]) , a non-GAAP measurement of liquidity, was as follows:

 
For the three months ended 
                                 June 30, 2025  June 30, 2026  June 30, 2026 
                                    RMB'000        RMB'000        US$'000 
                                 -------------  -------------  ------------- 
Net cash generated from (used 
 in) operating activities            1,301,049      (374,692)       (55,223) 
Reconciling items: 
  Net impact from internet 
   financing activities([11])           56,614      (130,015)       (19,162) 
  Capital expenditures               (555,862)      (244,000)       (35,961) 
Free cash inflow (outflow)             801,801      (748,707)      (110,346) 
                                 =============  =============  ============= 
 
 
 
For the trailing twelve months ended 
                                 June 30, 2025  June 30, 2026  June 30, 2026 
                                    RMB'000        RMB'000        US$'000 
                                 -------------  -------------  ------------- 
Net cash generated from 
 operating activities                9,673,390      8,766,247      1,291,985 
Reconciling items: 
  Net impact from internet 
   financing activities                 73,437       (51,648)        (7,612) 
  Capital expenditures             (2,908,504)    (1,512,848)      (222,966)