2022 is an important node for vipshop to adjust its operation roughly, but from the performance of the first quarter, the revenue pressure still exists.
On the evening of May 19, vipshop (NYSE: VIPs) released the Q1 financial report of 2022. Data show that the total net revenue of vipshop in the first quarter was 25.245 billion yuan, lower than the 25.81 billion yuan predicted by analysts, down about 11% year-on-year; The net profit was 1.096 billion yuan, down 29% from 1.548 billion yuan last year.
As of press time, vipshop fell 7.03% to $7.8.
Meanwhile, the number of active users and total orders of vipshop also declined year-on-year. The number of active users in the first quarter of 2022 was 42.2 million and 45.8 million in the same period of 2021; The total order volume in the first quarter of 2022 was 166 million, compared with 176 million in the first quarter of 2021.
Shen Ya, chairman and CEO of vipshop, said in the financial report that in the face of the challenging macro environment and the long-term impact of covid-19 epidemic, the company's business showed strong execution and operational flexibility in the first quarter. Shen Ya revealed that vipshop is still expanding the supply of non clothing categories to meet the existing consumer demand.
Gf Securities Co.Ltd(000776) once pointed out that vipshop adjusted its business strategy in 2022, reduced inefficient marketing investment in case of great macro pressure, paid more attention to quality, steadily raised the gross profit margin and net profit margin to a reasonable level and improved the efficiency of capital use.
The financial report shows that in the first quarter of 2022, the performance cost of vipshop decreased by 5.5% year-on-year to RMB 1.7 billion, compared with RMB 1.8 billion in the same period last year; Marketing expenses decreased by 41.3% year-on-year to 759 million yuan, compared with 1.3 billion yuan in the same period last year; The cost of technology and content increased to 390 million yuan from 337 million yuan in the same period last year.
The financial report shows that vipshop's cash flow is in good condition. As of March 31, 2022, the company has cash, cash equivalents and restricted cash of 14.3 billion yuan and short-term investment of 5 billion yuan. The free cash flow for the twelve months ended March 31, 2022 was 2.6 billion yuan.
According to the latest 13F document, hhlr advisors, a fund management company of Hillhouse group, significantly increased its holdings of vipshop: by the end of the first quarter of 2022, its market value of its position in vipshop had increased by 165% compared with the previous quarter.
On March 31 this year, vipshop announced that the company would repurchase American Depositary Shares or class a common shares of no more than US $1 billion in the next 24 months. Vipshop expects to use the existing cash balance to fund the repurchase.
However, vipshop's performance dilemma is likely to continue in the second quarter. According to vipshop's prediction, its total net income is expected to be between 22.2 billion yuan and 23.7 billion yuan in the second quarter of 2022, a year-on-year decrease of about 25% to 20%.
