Vipshop Holdings Limited (NYSE: VIPS), a Chinese online discount retailer, has disclosed an updated business outlook for the fourth quarter of 2021. The company, which was founded in 2008, has quickly expanded its business and built a large base of customers as well as brand partners.
The online retailer now foresees total net revenue for the fourth quarter of 2021 to be between RMB34.0 billion and RMB35.8 Billion, indicating a year-over-year decrease rate of about 5% to 0%. This is in comparison to the previous outlook that outlined a net revenue between RMB35.8 Billion and RMB37.6 billion, hinting at a year-over-year growth rate of approximately 0% to 5%. Nevertheless, the forecast is subject to change as it represents the Company’s recent view on the market and operational conditions.
Chairman and Chief Executive Officer of Vipshop, Mr. Eric Shen, stated, “We are delighted to have finished the year of 2020 with strong financial and operational results in the fourth quarter. The growth in our number of active customers in the fourth quarter of 2020 continued to accelerate, reaching 37% year over year. Our GMV in the quarter has also shown strong growth momentum, with total GMV increasing by 25% year over year to 59.3 billion from 47.6 billion in the prior-year period, driven by a strong 28% year-over-year increase in apparel-related GMV. We are glad that our customers, old and new, are recognizing the value of our differentiated offerings, as exemplified by a 10% year-over-year increase in our conversion rate in the fourth quarter of 2020. Looking ahead, we will continue to be keenly focused on our merchandising strategy, while at the same time, enhancing our big data and technological capabilities to cater to the diversified needs of a broader customer base, particularly in our core categories, aiming to further expand our market share in China’s discount retail market.”