Vipshop Holdings Ltd – ADR (NYSE:VIPS) announced fourth quarter earnings and the company beat revenue estimates handily. The company announced it turned a profit of 4 cents a share despite suffering higher operating costs. Net sales took off and the Chinese online discount retailer showed revenue of $1.36 billion. That was a change of 108% when compared to the same period a year ago.
The company saw its customer numbers rise also. The company showed a 114% gain in active customers along with a 99% rise in total orders. Vipshop attributes these gains to expanded brand recognition along with diversifying brands and products on its website. Mobile users helped and Vipshop Holdings Ltd – ADR (NYSE:VIPS) made an effort to upgrade mobile users experience with the E-commerce website.
Gross profits rose 112% to $338 million for the fourth quarter but bottom line profits were helped by shrinking margins. Margins rose to 24% of sales. Vipshop Holdings Ltd – ADR (NYSE:VIPS) ended up showing a bottom line profit of $79.6 million. This missed analysts’ estimates though.
For the year ended 2014 the company’s per share profit came in at a decent 23 cents. That was short though of last year’s showing of $1.00. Consensus estimates were for the company to show an EPS of 26 cents. Sales for the year were strong and came in at $3.8 billion. The company forecast next year to come in at a revenue of between $1.25 and $1.30 billion which is between 78-85% better than the previous same period. The company has been working to establish its brand and the rise in revenues show its working. Vipshop Holdings Ltd – ADR (NYSE:VIPS) was founded in the summer of 2008 and has quickly built itself to one of the most popular E-commerce websites. The website offers great products at deep discounts throughout China.
The stock is at the end of a triple bottom pattern which is bullish. Momentum went solidly positive after they released earnings. Despite the profit miss Vipshop Holdings Ltd – ADR (NYSE:VIPS) is showing solid growth and future prospects.
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