Vipshop's Full-Year Profit Jumps 30% on Higher Sales, Customer Numbers
Yicai Global
/SOURCE : Yicai
Vipshop's Full-Year Profit Jumps 30% on Higher Sales, Customer Numbers

(Yicai Global) Feb. 21 -- Vipshop Holdings Ltd. [NYSE:VIPS], the world's biggest online discount retailer, had a 30 percent jump in full-year profit after growing sales and adding more customers.

Non-GAAP net income increased to CNY2.87 billion (USD417 million) in 2016 from CNY2.20 billion a year earlier, the Guangzhou-based company said in a filing yesterday. Revenue soared 41 percent to CNY56.59 billion.

"We are delighted to have delivered strong operational results with solid customer and market share gain in the year of 2016," Chairman and Chief Executive Eric Shen said. "Our robust results are a testament to the solid strength of our business model and we are confident that we can continue to maintain our market leadership going forward."

Vipshop, which sells branded items at discount prices, saw total orders jump 40 percent to 269.8 million in the 12 months, while the number of its active customers rose 42 percent to 52.1 million. It has 300 million registered users and listed on the New York Stock Exchange in March 2012.

"We had strong cash flow and delivered solid topline growth while maintaining steady margins" in the fourth quarter of 2016, Chief Financial Officer Yang Donghao said on a conference call.

"We continued to expand our logistics and warehousing network by adding five local distribution centers to further improve the efficiency and speed of our fulfillment and distribution capabilities," he said. "Looking ahead, we'll continue to invest in areas that are crucial to the customer experience across our platform while balancing revenue growth and margins."

The company forecasts revenue of between CNY15.3 billion and CNY15.8 billion for the first quarter of this year.

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