Q2 FY2026
Filed Aug 25, 2026Vipshop Reports Unaudited Second Quarter 2026 Financial Results
Revenue, GMV, active customers, orders, gross profit and operating profitability declined from the prior-year period, while reported GAAP net income rose on a RMB5.79 billion one-off investment gain from the Vipshop Commercial REIT. Non-GAAP net income fell sharply amid a one-time withholding tax adjustment, and third-quarter revenue guidance calls for a year-over-year decrease of approximately 5% to 0%.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total net revenuesGAAP | RMB24.7 billion (US$3.6 billion) | – | – |
| Product revenuesGAAP | RMB22,660,148 thousand (US$3,339,693 thousand) | – | – |
| Other revenuesGAAP | RMB2,047,001 thousand (US$301,691 thousand) | – | – |
| GMVother | RMB50.6 billion | – | – |
| Active customersother | 42.3 million | – | – |
| Total ordersother | 182.4 million | – | – |
| Gross profitGAAP | RMB5.8 billion (US$848.1 million) | – | – |
| Gross marginGAAP | 23.3% | – | – |
| Cost of revenuesGAAP | RMB18,952,457 thousand (US$2,793,247 thousand) | – | – |
| Total operating expensesGAAP | RMB4.5 billion (US$656.5 million) | – | decreased by 2.4% year over year |
| Total operating expenses as a percentage of total net revenuesGAAP | 18.0% | – | – |
| Fulfillment expensesGAAP | RMB2.14 billion (US$315.1 million) | – | – |
| Fulfillment expenses as a percentage of total net revenuesGAAP | 8.7% | – | – |
| Marketing expensesGAAP | RMB760.3 million (US$112.1 million) | – | – |
| Marketing expenses as a percentage of total net revenuesGAAP | 3.1% | – | – |
| Technology and content expensesGAAP | RMB486.2 million (US$71.7 million) | – | – |
| Technology and content expenses as a percentage of total net revenuesGAAP | 2.0% | – | – |
| General and administrative expensesGAAP | RMB1.1 billion (US$157.7 million) | – | decreased by 17.5% year over year |
| General and administrative expenses as a percentage of total net revenuesGAAP | 4.3% | – | – |
| Income from operationsGAAP | RMB1.5 billion (US$224.0 million) | – | – |
| Operating marginGAAP | 6.2% | – | – |
| Non-GAAP income from operationsnon-GAAP | RMB2.0 billion (US$295.7 million) | – | – |
| Non-GAAP operating marginnon-GAAP | 8.1% | – | – |
| Income tax expensesGAAP | RMB3.3 billion (US$491.8 million) | – | – |
| Net income attributable to Vipshop's shareholdersGAAP | RMB4.3 billion (US$634.7 million) | – | increased by 189.1% year over year |
| Net margin attributable to Vipshop's shareholdersGAAP | 17.4% | – | – |
| Net income attributable to Vipshop's shareholders per diluted ADSGAAP | RMB8.82 (US$1.30) | – | – |
| Non-GAAP net income attributable to Vipshop's shareholdersnon-GAAP | RMB392.2 million (US$57.8 million) | – | – |
| Non-GAAP net margin attributable to Vipshop's shareholdersnon-GAAP | 1.6% | – | – |
| Non-GAAP net income attributable to Vipshop's shareholders per diluted ADSnon-GAAP | RMB0.80 (US$0.12) | – | – |
| Weighted average number of ADSs used in computing diluted income per ADSGAAP | 488,098,800 | – | – |
| Share-based compensation expensesGAAP | RMB486,514 thousand (US$71,704 thousand) | – | – |
| Investment gain (loss) and revaluation of investmentsGAAP | RMB5,801,875 thousand (US$855,091 thousand) | – | – |
| Impairment loss of investmentsGAAP | RMB23,738 thousand (US$3,499 thousand) | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Product revenuesNot specified. | RMB22,660,148 thousand (US$3,339,693 thousand) | – | – |
| Other revenuesOther revenues primarily consist of product promotion and online advertising revenues, lease income mainly earned from the Shan Shan Outlets, fees charged to third-party merchants, revenue from third-party logistics services, loan facilitation service income and membership fee income. | RMB2,047,001 thousand (US$301,691 thousand) | – | – |
Third quarter of 2026 outlook
- Revenuebetween RMB20.3 billion and RMB21.4 billion, representing a year-over-year decrease of approximately 5% to 0%
Capital returns
- During the quarter ended June 30, 2026, the Company repurchased US$99.1 million of its ADSs under its current US$1.0 billion share repurchase program.
- As of June 30, 2026, the Company had an unutilized amount of US$216.9 million under the Existing Program.
- On August 20, 2026, the board of directors authorized a new share repurchase program under which the Company may repurchase up to US$1.0 billion of its American depositary shares or Class A ordinary shares for a 24-month period commencing from the full utilization of the Existing Program.
- During the first half, the Company returned approximately US$400 million to shareholders through dividends and share repurchases.
What drove it
- Management cited a challenging consumer environment and subdued consumer demand.
- Management said active SVIPs delivered solid performance.
- The Company recognized an investment gain of RMB5.79 billion during the second quarter from the listing of the Vipshop Commercial REIT.
- The increase in income tax expenses was driven by an income tax expense of RMB1.63 billion relating to the one-off investment gain and an accrued withholding tax expense of RMB1.56 billion related to historical dividend distributions.
- General and administrative expenses declined primarily due to higher share-based compensation expenses for Shan Shan Outlets recorded in the prior-year period.
Concerns
- Total net revenues, GMV, active customers and total orders were below the prior-year period.
- Gross margin declined to 23.3% from 23.5%, while operating margin declined to 6.2% from 6.6%.
- Fulfillment, marketing, and technology and content expenses each increased as a percentage of total net revenues from the prior-year period.
- Non-GAAP net income attributable to Vipshop's shareholders was RMB392.2 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.
- Third-quarter revenue outlook indicates a year-over-year decrease of approximately 5% to 0%.
- Quarterly operating cash flow and free cash flow were outflows.
What to watch
- Third-quarter total net revenues guidance of between RMB20.3 billion and RMB21.4 billion.
- Trends in active customers, total orders and GMV amid the consumer environment described by management.
- The progression of gross margin, operating margin and expense ratios.
- The impact of the one-time withholding tax adjustment and the commercial REIT transaction on reported and non-GAAP earnings.
- Execution of the Existing Program and the new share repurchase program authorized on August 20, 2026.
Balance sheet and cash flow
- As of June 30, 2026, cash and cash equivalents and restricted cash were RMB29.9 billion (US$4.4 billion).
- Short term investments were RMB3.6 billion (US$533.3 million) as of June 30, 2026.
- Short term loans were RMB10,968,130 thousand (US$1,616,502 thousand) as of June 30, 2026, compared with RMB5,844,620 thousand as of December 31, 2025.
- Net cash used in operating activities was RMB374.7 million (US$55.2 million) for the quarter ended June 30, 2026, compared with net cash generated from operating activities of RMB1,301,049 thousand for the three months ended June 30, 2025.
- Free cash outflow was RMB748.7 million (US$110.3 million) for the quarter ended June 30, 2026, compared with free cash inflow of RMB801,801 thousand for the three months ended June 30, 2025.
- Capital expenditures were RMB244.0 million (US$36.0 million) for the quarter ended June 30, 2026, compared with RMB555,862 thousand for the three months ended June 30, 2025.
- For the trailing twelve months ended June 30, 2026, net cash generated from operating activities was RMB8,766,247 thousand (US$1,291,985 thousand), compared with RMB9,673,390 thousand for the trailing twelve months ended June 30, 2025.
- For the trailing twelve months ended June 30, 2026, free cash inflow was RMB7,201,751 thousand (US$1,061,407 thousand), compared with RMB6,838,323 thousand for the trailing twelve months ended June 30, 2025.
Analysis
Vipshop's second-quarter operating indicators weakened from the prior-year period. Total net revenues were RMB24.7 billion (US$3.6 billion), compared with RMB25.8 billion, while GMV was RMB50.6 billion versus RMB51.4 billion. Active customers were 42.3 million compared with 43.5 million, and total orders were 182.4 million compared with 193.0 million. Management characterized the backdrop as a challenging consumer environment with subdued consumer demand.
Profitability from core operations also moved lower. Gross profit was RMB5.8 billion (US$848.1 million) compared with RMB6.1 billion, and gross margin was 23.3% compared with 23.5%. Income from operations was RMB1.5 billion (US$224.0 million) compared with RMB1.7 billion, with operating margin at 6.2% compared with 6.6%. Non-GAAP income from operations was RMB2.0 billion (US$295.7 million), compared with RMB2.4 billion, and its margin was 8.1% compared with 9.3%.
Reported GAAP earnings were dominated by the commercial REIT transaction. Net income attributable to Vipshop's shareholders increased by 189.1% year over year to RMB4.3 billion (US$634.7 million), primarily due to a one-off investment gain of RMB5.79 billion from the listing of a commercial REIT. The transaction generated gross proceeds of approximately RMB7.70 billion and carried an associated income tax expense of RMB1.63 billion. Separately, the Company accrued RMB1.56 billion of withholding tax expense related to historical dividend distributions. These items contributed to non-GAAP net income attributable to shareholders of RMB392.2 million (US$57.8 million), compared with RMB2.1 billion in the prior-year period.
Cash resources remained substantial, with cash and cash equivalents and restricted cash of RMB29.9 billion (US$4.4 billion) plus short term investments of RMB3.6 billion (US$533.3 million) at June 30, 2026. However, quarterly net cash used in operating activities was RMB374.7 million (US$55.2 million), and free cash outflow was RMB748.7 million (US$110.3 million). The Company repurchased US$99.1 million of ADSs during the quarter and reported approximately US$400 million returned through dividends and repurchases during the first half.
The third-quarter outlook calls for total net revenues between RMB20.3 billion and RMB21.4 billion, representing a year-over-year decrease of approximately 5% to 0%. This guide places the focus on whether merchandising, customer-experience, and AI initiatives can stabilize customer activity and orders while the Company maintains margin discipline. It also puts attention on the contrast between the one-off-supported GAAP earnings result and the lower non-GAAP earnings and cash flow performance.
Management, verbatim
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. Eric Shen, Chairman and Chief Executive Officer of Vipshop
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.
Mr. Mark Wang, Chief Financial Officer of Vipshop
Not in the filing
stated, not guessed- Previous-release outlook was not provided; therefore, no comparison of actual results with prior guidance is available.
- Prior-quarter comparisons are not reported for the quarterly metrics.
- The Company does not report operating segments.
- Third-quarter guidance for gross margin, operating expenses, tax rate, earnings, GMV, active customers, orders, operating cash flow, free cash flow, dividends, or repurchases is not provided.
- A quarterly dividend amount is not provided.
- Long-term debt and total debt are not separately reported.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.