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Vipshop (VIPS) to Report Q2 Earnings: What's in the Offing?

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Vipshop Holdings Limited (VIPS - Free Report) is set to report second-quarter 2021 results on Aug 18.

For the second quarter, it expects total net revenues between RMB 28.9 billion and RMB 30.1 billion, indicating growth of 20-25% from the prior-year reported figure.

The Zacks Consensus Estimate for revenues is pegged at $4.5 billion, suggesting a surge of 31.8% from the year-ago reported figure.

Further, the consensus mark for earnings per share is pegged at 36 cents per share, which indicates year-over-year growth of 33.3%.

The company surpassed the Zacks Consensus Estimate in two of the trailing four quarters, missed the same once and matched on another occasion, delivering an earnings surprise of 6.6%, on average.

Vipshop Holdings Limited Price and EPS Surprise

Vipshop Holdings Limited Price and EPS Surprise

Vipshop Holdings Limited price-eps-surprise | Vipshop Holdings Limited Quote

Factors to Consider

Growing efforts toward strengthening product offerings and improving product procurement are expected to have benefited its second-quarter performance.

Differentiated offerings from marketplace platforms are anticipated to have persistently driven momentum across repeated customers and attracted new ones during the quarter.

Solid execution of merchandising strategy is likely to have strengthened Vipshop’s total active customer base in the to-be-reported quarter. This might have accelerated its gross merchandise volume (GMV).

The company’s deep discount channels are expected to have bolstered online GMV in the quarter under review.

Further, the company’s Shan Shan Outlets — operating five outlets in Ningbo, Taiyuan, Harbin, Zhengzhou and Nanchang — might have continued driving GMV in the second quarter.

Its collaborations with suppliers to increase contribution from Made-for-Vipshop products is expected to have remained a tailwind.

Growing investment in advertising activities related to customer acquisition and retention is likely to have contributed well to the top line in the quarter under discussion.

Yet, rising competition in the online shopping market and mounting marketing expenses are anticipated to have affected the company’s second-quarter performance.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for Vipshop this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

It has an Earnings ESP of 0.00% and a Zacks Rank #3, at present.

Stocks to Consider

Here are some stocks that you may consider as our model shows that these have the right combination of elements to beat on earnings this season.

HP Inc. (HPQ - Free Report) has an Earnings ESP of +1.00% and a Zacks Rank of 3, at present.

salesforce.com, inc. (CRM - Free Report) has an Earnings ESP of +1.02% and a Zacks Rank of 3, at present.

Aspen Group Inc. (ASPU - Free Report) has an Earnings ESP of +11.11% and a Zacks Rank of 3, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.


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