Vipshop Holdings Ltd.: A Tale of Two Cities

Research evidence excerpt

Vipshop Holdings Ltd.: A Tale of Two Cities

Equity Research

China Technology

22 May 2026

Vipshop Holdings Ltd.

A Tale of Two Cities

Earnings ReviewVIPS reported in-line 1Q26 results but mgt.'s tone over the

rest of the year seems to be conservative

while Shanshan offline outlet growth continues with 30% yoy VIPS OVERWEIGHT Unchanged

growth in GMV... China Technology POSITIVE

Unchanged

Largely in-line result for 1Q but management's tone over 2Q and rest of the year appears Price Target USD 20.00

very conservative. VIPS reported total revenue of RMB 26.6bn, +0.7%, with a GMV of RMB Unchanged

56.9bn, +5.4% vs. our estimate on strong offline outlet performance, which saw GMV grow ~30% Price (20-May-26) USD 14.22

yoy in 1Q. In line with our prior expectation, VIPS's online business has seen meaningful Potential Upside/Downside +40.6%

slowdown in Mar. following a strong Jan. and Feb., partially due to timing of the Chinese New Source: Bloomberg, Barclays Research

Year as well as warm weather. Mgt. further shared the trend continued into Apr. and rebound in

May has been very modest and guided 2Q revenue to be down 0 to -5% yoy, which implies GMV Market Cap (USD mn) 6829

to be up MSD% yoy if the gap between revenue and GMV remains as large as that of 1Q. Apparel Shares Outstanding (mn) 480.27

continues to be the driving factor of VIPS's business. In 1Q it outperformed with double-digit Free Float (%) N/A

yoy GMV growth while standard product underperformed with yoy decline. As apparel now 52 Wk Avg Daily Volume (mn) 2.6

accounts for roughly 80% of the total GMV, it has become a main driver behind VIPS's gross Dividend Yield (%) 4.27

margin expansion to a record high of 24.4% in 1Q (apparel has higher GM than standardized Return on Equity TTM (%) 17.68

product).