Vipshop (VIPS) Q1 2026 earnings summary

Executive summary

• Q1 2026 performance was driven by a late Chinese New Year, strong apparel sales, and a surge in SVIP members, who now account for 55% of online spending and grew 9% year-over-year.

• Merchandising optimization, AI integration, and exclusive offerings accelerated inventory turnover and enhanced customer engagement, especially among high-value consumers.

• Maintains leadership as China's top off-price retailer, leveraging omni-channel strategy, efficient inventory monetization, and data-driven operations.

• SVIP program and visionary management drive sustainable revenue and earnings growth, underpinned by robust ESG commitments.

• GMV increased 8.6% year-over-year to RMB 56.9 billion, with active customers up 0.9% to 41.7 million and total orders up 3.2% to 172.6 million.

Financial highlights

• Q1 2026 net revenues rose 1.2% year-over-year to RMB 26.6 billion; 2025 full-year revenues were RMB 112.9 billion, up 1.2%.

• Gross profit for Q1 2026 increased 6.8% to RMB 6.5 billion, with gross margin up to 24.4% from 23.2%.

• Income from operations for Q1 2026 grew 9.7% to RMB 2.5 billion; operating margin rose to 9.4%.

• Net income attributable to shareholders for Q1 2026 increased 13.6% to RMB 2.2 billion; net margin rose to 8.3%.

• Non-GAAP net income per diluted ADS for Q1 2026 increased to RMB 4.68; 2025 non-GAAP net income was RMB 9.51 billion with an 8.4% margin.

Outlook and guidance

• Q2 2026 net revenues are expected between RMB 24.5 billion and RMB 25.8 billion, a year-over-year decrease of approximately 5% to 0%.

• Management aims to maintain operational performance and solidify market leadership by enhancing merchandising, expanding the portfolio, and investing in technology.

• Focus remains on sustainable, quality growth in revenue and profitability despite near-term softness and low consumer visibility.