Vipshop(VIPS 5.84%) reported second quarter 2025 earnings on August 14, 2025, posting net revenue of RMB25.8 billion and non-GAAP net income per ADS of RMB4.06. The call highlighted resilient core apparel demand, accelerated SVIP (Super VIP loyalty program) growth, differentiated merchandising execution, and a substantial shareholder return program, with management guiding for flat to 5% top-line growth for the third quarter of 2025.
SVIP loyalty program accelerates Vipshop’s repeat spending
Active SVIP customers, who are part of the company’s premium loyalty program, increased by 15% year over year in the second quarter, contributing 52% of online spending. This segment’s growth outpaced overall customer growth, reflecting the company’s focus on high-value, repeat buyers and the effectiveness of its customer engagement initiatives.
"In the second quarter, active SVIP customers increased by 15% year over year, contributing 52% of our online spending. This high-value customer segment continued to outperform in terms of sales and revenue growth."
-- Eric Shen, Co-Founder, Chairman and CEO
The rapid expansion of SVIP members is driving higher repeat purchase rates and supports a more stable revenue base, which is critical for long-term profitability and customer retention.
Vipshop expands exclusive brand partnerships
In the first half of 2025, nearly 500 new brands were added to the platform, and the “made-for-Vipshop” customized product line generated over 20% of apparel sales for many participating brands. This approach has deepened supplier relationships and improved the company’s control over product assortment, setting it apart from undifferentiated discount peers.
"In the first half, we added close to 500 brands to our platform, which are gaining traction among customers. The made-for-Vipshop line is a key part of our differentiation. It's delivering a more compelling brand of quality and value that results in high-value customers, repeat purchases, and the best conversions. In the second quarter, it maintained strong sales momentum, contributing a meaningful portfolio of our apparel sales for many brands. This customized product accounted for more than 20% of their sales on our platform. In the second quarter, we added more high-fashion selections, achieving improved sales loops. We saw growing customer recognition of our platform as the go-to place for fresh sales and treasure hunting."
-- Eric Shen, Co-Founder, Chairman and CEO
Vipshop’s focus on exclusive and co-developed merchandise enhances its competitive positioning, increases customer loyalty, and supports higher conversion rates compared to generic discount retailers.
Vipshop delivers robust capital returns to shareholders
Over $640 million was returned to shareholders through dividends and buybacks in the first half of 2025, with RMB24.7 billion in liquidity as of June 30, 2025. Management reaffirmed its commitment to return at least 75% of its RMB9 billion fiscal 2024 non-GAAP net income to shareholders in 2025, equating to roughly $900 million in total capital returns.
"We are formally on track to deliver our shareholder return commitment for 2025, which is no less than 75% of the full-year 2024 non-GAAP net income. In the first half, we distributed a total of over $640 million through a combination of dividend payments and share buybacks, reflecting both our robust cash flow generation and conviction in the company's fundamental value and growth prospects."
-- Mark Wang, CFO
Consistent high payout ratios, underpinned by disciplined expense management and stable margins, reinforce Vipshop’s shareholder-friendly capital allocation strategy and signal confidence in its long-term cash flow generation.
Looking Ahead
Management guided for third quarter 2025 net revenues of RMB20.7 billion to RMB21.7 billion, representing 0% to 5% year-over-year growth, supported by organizational and merchandising reforms that are driving renewed customer growth and category expansion. The company reaffirmed its formal commitment to return no less than 75% of fiscal 2024 non-GAAP net income to shareholders via dividends or buybacks during 2025. No further specific quantitative forecasts or milestones were disclosed for the Shenzhen outlet business or broader AI implementation initiatives.
