Chinese online discounter Vipshop Holdings has doubled its profit in the second quarter to June 30.
It reported total net revenue soared 77.6 per cent to US$1.5 billion, its gross profit by 78.6 per cent to $360 million and its income by 192.5 per cent to $70.6 million.
Chairman and CEO Eric Shen said the strong quarter was largely driven by expansion of mobile operations and continuing growth in customers and orders in its our core flash sales business.
“Our smooth and swift execution on the mobile front – with 76 per cent of our gross merchandise value now coming from mobile devices – has helped set us apart in the market, and further clarifies the unique value of our flash sale model for on-the-go shoppers,” he said.
“Our cross-border expansion, supplier financing initiatives and logistical enhancements have further improved our ecosystem for brands and customers. Going forward, we will focus on expanding our market share and scaling our operations through enhancing the customer shopping experience, attracting new customers and elevating our brand value in China and globally.”
Donghao Yang, CFO, said Vipshop was on track to meet its 1.5 million sqm warehouse target by the end of the year.
“We also continue to expand our local delivery and services network, which we are currently using to deliver over 70 per cent of our total orders across almost all provinces in mainland China.”
The number of active customers for the second quarter of 2015 increased by 47.2 per cent to 14.2 million from 9.7 million in the prior year period. The number of total orders for the second quarter of 2015 increased by 55.2 per cent to 44.9 million from 28.9 million in the prior year period.