Vipshop Holdings (NYSE: VIPS) reported Q1 EPS of $0.20, $0.09 better than the analyst estimate of $0.11. Revenue for the quarter came in at $2.7 billion versus the consensus estimate of $2.54 billion.

First Quarter 2020 Highlights

• Non-GAAP net margin attributable to Vipshop's shareholders[8] for the first quarter of 2020 increased to 5.2% from 3.8% in the prior year period. Non-GAAP net income attributable to Vipshop's shareholders per diluted ADS[9] for the first quarter of 2020 increased to RMB1.44 (US$0.20) from RMB1.19 in the prior year period.
• Total net revenue for the first quarter of 2020 was RMB18.8 billion (US$2.7 billion), as compared with RMB21.3 billion in the prior year period, primarily attributable to soft consumer demand for discretionary categories, delayed logistic services and slow response from the supply chain during the COVID-19 pandemic.
• GMV[1] for the first quarter of 2020 was RMB28.9 billion, as compared with RMB33.8 billion in the prior year period.
• Gross profit for the first quarter of 2020 was RMB3.6 billion (US$510.8 million), as compared with RMB4.4 billion in the prior year period.
• Net income attributable to Vipshop's shareholders for the first quarter of 2020 was RMB684.8 million (US$96.7 million), as compared with RMB872.3 million in the prior year period.
• Non-GAAP net income attributable to Vipshop's shareholders[2] for the first quarter of 2020 increased by 20.8% year over year to RMB986.1 million (US$139.3 million) from RMB816.3 million in the prior year period.
• The number of active customers[3] for the first quarter of 2020 was 29.6 million, as compared with 29.7 million in the prior year period.
• Total orders[4] for the first quarter of 2020 increased by 4% year over year to 121.7 million from 116.5 million in the prior year period.

Mr. Eric Shen, Chairman and Chief Executive Officer of Vipshop, stated, "We are pleased to have delivered resilient results for the first quarter of 2020, despite the negative impact from the COVID-19 pandemic on the Chinese economy and consumption in general during this quarter. Through this difficult time, we have worked closely with our brand partners and logistics suppliers to provide desirable products and reliable services to our customers. We are glad to see that daily life in China has returned to normal, and as a result, our business has seen healthy recovery since March. We believe that we are well positioned to gain share in the discount retail market in China, and are committed to continuing to help our suppliers monetize on their excess inventory effectively, while offering our customers the best deals, particularly in our core categories."

Mr. Donghao Yang, Chief Financial Officer of Vipshop, further commented, "We are glad to have finished the first quarter of 2020 with solid profitability, even amidst the COVID-19 pandemic. We have seen solid customer retention trends in the first quarter of 2020, despite reduced investment in marketing. Looking ahead, we believe that we are presented with opportunities to expand our market share in the current macro-economic environment, due to the counter-cyclical nature of our discount retail business. We are deeply devoted to the execution of our merchandising strategy and will continue to balance our growth and profitability, further strengthening our expertise in apparel-related categories."

Business Outlook

For the second quarter of 2020, the Company expects its total net revenue to be between RMB22.7 billion and RMB23.8 billion, representing a year-over-year growth rate of approximately 0% to 5%, primarily factoring in the continued impact from the COVID-19 pandemic. These forecasts reflect the Company's current and preliminary view on the market and operational conditions, which is subject to change.

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