Vipshop Holdings Ltd. Q3 FY2024 earnings call

• SVIP membership growth remained strong with active SVIP customers growing 11% year-over-year, accounting for 49% of online spending.
• Emphasized merchandising capabilities, building assortments relevant to customer lifestyles and trend-right categories, with strength in sports/outdoor goods and homeware despite broader weakness.
• Made for VIP line for customized products saw growth with about 200 brand partners, and over half of sales from SVIP and high-value customers.
• Adjusted to focus on providing good value for customers with everyday low prices, time-limited offers, and incentives for family shoppers.
• Deployed technology to improve search/recommendations and leverage AI for content optimization.

No detailed breakdown of product segments' financial performance by absolute terms and revenue contribution % was provided in the transcript.

• For the fourth quarter of 2024, total net revenues are expected to be between RMB31.2 billion and RMB32.9 billion, representing a year-over-year decrease of approximately 10% to 5%.
• 2025 outlook is unpredictable depending on macro recovery, consumer confidence, but focused on growing profit dollars and maintaining relatively stable margins while being disciplined with cost and expenses.

• Forward-looking statements subject to risks and uncertainties outlined in safe-harbor statements.
• Q4 is challenging due to conservative guidance, weather factors (e.g., less cold than last year affecting base), and uncertain consumer sentiment despite government supportive measures not significantly benefiting apparel-focused business.

Q: About recent consumer sentiment after government supportive measures, monthly GMV trends in Q4, 2025 outlook on GMV and margin, and when GMV might return to positive growth.

A: Recent business trends had October good due to early Double 11, but Q4 still challenging. Consumer sentiment still stretched, not meaningfully recovered for apparel-focused business. 2025 outlook unpredictable, focused on growing profit dollars and maintaining margins. GMV return to positive growth depends on macro and consumer factors.

Q: About Double 11 performance, 4Q guidance conservatism, and return rate.

A: Double 11 full-cycle GMV over 20% growth, but 20-day promotional campaigns in line with expectations. 4Q guidance conservative due to weather (less cold than last year) and high base. Return rate stable due to stable return policy, not seeing sudden changes like other platforms.

Q: About gross margins outlook, tax expenses related to cash transfer.

A: Q4 gross margin expected marginally lower than Q3, well within 23%. Tax expenses related to remitting dividends for share buyback, excluding withholding tax, effective tax rate would be ~17%-18%.

Q: About product category performance and SVIP user behavior.

A: Apparel had small GMV decline, making adjustments to increase shopping in daily essentials. SVIP had 7.5 million active customers, 11% year-over-year growth, new SVIP customers dilutive but same cohort stable, small ARPU decline due to less frequency but stable average ticket size.

Q: About SVIP ARPU decline reasons and trading subsidies.

A: SVIP ARPU decline due to less frequency, efforts to increase engagement via lower membership bar, more discounts, and events. Trading subsidies for offline not meaningfully benefiting apparel-focused online business, online expected small additional sales, but apparel still primary focus.