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What: Shares of Chinese e-retailer Vipshop (VIPS 0.07%) were soaring again today, gaining as much as 21%, after reporting earnings last night.
So what: The online discount retailer has been on a tear, up more than 400% in less than a year as a publicly traded company, and today's results didn't disappoint. Revenue grew 184%, to $299.6 million, and the number of active customers grew at nearly the same pace. Adjusted operating income was $7.2 million, up from an $11.1 million loss a year ago, and adjusted earnings per share of $0.16 was double expectations. The first-quarter outlook was also way ahead of analyst expectations, as management said it expects revenue growth of 162% to 167%, and sales to hit $265-$270 million. The experts had projected just $210 million.
Now what: In the report, CEO Eric Shen touted his company's creation of a "third e-commerce model that provides special offers and deep discounts on branded products." As its customer base and brand partnerships grow, Vipshop's top line figures to keep moving north as its business model becomes stronger. Gross margin also improved from 20% a year ago, to 22.9%, indicating that the company should become more profitable as it grows. The future looks bright for Vipshop from here.
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