Vipshop Holdings (NYSE: VIPS) reported Q3 EPS of $0.27, $0.01 better than the analyst estimate of $0.26. Revenue for the quarter came in at $3.4 billion versus the consensus estimate of $3.27 billion.

Third Quarter 2020 Highlights

• Net income attributable to Vipshop's shareholders per diluted ADS[7] for the third quarter of 2020 increased to RMB1.80 (US$0.27) from RMB1.30 in the prior year period.
• Total net revenue for the third quarter of 2020 increased by 18.2% year over year to RMB23.2 billion (US$3.4 billion) from RMB19.6 billion in the prior year period.
• GMV[1] for the third quarter of 2020 increased by 21% year over year to RMB38.3 billion from RMB31.7 billion in the prior year period.
• Gross profit for the third quarter of 2020 increased by 15.3% year over year to RMB4.9 billion (US$718.9 million) from RMB4.2 billion in the prior year period.
• Net income attributable to Vipshop's shareholders for the third quarter of 2020 increased by 42.1% year over year to RMB1.2 billion (US$183.3 million) from RMB875.5 million in the prior year period.
• Non-GAAP net income attributable to Vipshop's shareholders[2] for the third quarter of 2020 increased by 15.2% year over year to RMB1.4 billion (US$204.1 million) from RMB1.2 billion in the prior year period.
• The number of active customers[3] for the third quarter of 2020 increased by 36% year over year to 43.4 million from 32.0 million in the prior year period.
• Total orders[4] for the third quarter of 2020 increased by 35% year over year to 172.8 million from 127.6 million in the prior year period.

Mr. Eric Shen, Chairman and Chief Executive Officer of Vipshop, stated, "We finished the third quarter of 2020 with robust financial and operational results. During the quarter, our number of active customers increased by 36% year over year to 43.4 million from 32.0 million in the prior year period. Importantly, both our existing and new customers have shown improved next-month retention as compared to the same period last year. We are glad that customers recognize the value of our differentiated offerings, particularly in our core apparel-related categories. We are confident the positive trends in customer acquisition and retention will continue to drive our growth and profitability going forward. Looking ahead, we remain focused on providing value to our customers, offering superior customer experience and carefully procured assortments at a deep discount, further enabling us to gain share in China's discount retail market."

Mr. Donghao Yang, Chief Financial Officer of Vipshop, further commented, "In the third quarter of 2020, we delivered strong topline growth coupled with solid profitability, driven by the strong performance in new customer acquisition and existing customer retention. Our total GMV for the quarter increased by 21% year over year to 38.3 billion from 31.7 billion in the prior year period, and GMV for our core apparel-related categories grew even faster at 29% year over year. Going forward, we will continue to focus on improving our merchandising capability and offering a differentiated shopping experience as compared to marketplace platforms, delivering solid shareholder return over time."

Business Outlook

For the fourth quarter of 2020, the Company expects its total net revenue to be between RMB33.7 billion and RMB35.2 billion, representing a year-over-year growth rate of approximately 15% to 20%. 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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