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    VIPS
    Earnings call· Dec 2025(Q4 FY25)

    Vipshop Holdings Q4 FY25 earnings call VIPS

    Feb 26, 2026 Source

    Executive summary

    Vipshop Q4 FY25 — Resilient Profitability Amidst Dynamic Market

    Vipshop navigated a dynamic 2025 with strategic realignment and operational resilience, delivering robust profitability despite a slight top-line deceleration in Q4 due to seasonal factors. The company remains committed to high-quality, sustainable growth, leveraging its off-price model, AI integration, and Super VIP program to enhance customer engagement and operational efficiency. Management expects stable margins and renewed customer growth in 2026, supported by offline expansion.

    Highlights

    5

    • Full year 2025 non-GAAP net income attributable to shareholders was RMB 8.7 billion, with non-GAAP net margin stable at 8.3%.

    • Super VIP active members grew 11% to 9.8 million in 2025, contributing 52% of online spending.

    • Made for VIP line sales grew over 40% in 2025, accounting for 5% of online apparel sales.

    • Commitment to return $944 million to shareholders in 2025 through dividends and share repurchases.

    • Q4 2025 income from operations increased by 1.7% year-over-year to RMB 2.90 billion, with operating margin increasing to 8.9% from 8.6%.

    Concerns

    5

    • Q4 2025 net revenues were RMB 32.5 billion, slightly below expectations and down from RMB 33.2 billion in the prior year period, due to deceleration in December sales.

    • Gross margin for Q4 2025 was 22.9%, a slight decrease from 23.0% in the prior year period.

    • Full year 2025 total net revenues were RMB 105.9 billion, down from RMB 108.4 billion in the prior year.

    • Full year 2025 gross margin was 23.1%, down from 23.5% in the prior year.

    • Customer growth was under pressure in Q4 due to unexpected slowdown in consumer activity.

    Guidance & targets

    4
    CategoryTargetConfidence
    Total net revenues
    between RMB 26.3 billion and RMB 27.6 billion
    high materiality
    High
    Margin outlook
    stable
    high materiality
    High
    Capital returns
    no less than 75% of full year 2025 non-GAAP net income attributable to Vipshop's shareholders
    high materiality
    High
    Annual dividend
    approximately USD 300 million
    high materiality
    High

    Segment performance

    1
    SegmentRevenueYoYQoQMargin
    Made for VIP line (within online apparel)
    Became a key driver of differentiation, streamlining exclusive products to build clear identity and drive mind share.
    % of online apparel sales: 5%
    		—over 40%——

    Operational metrics

    15
    Total capital returned to shareholders
    $944 million
    FY25

    Delivered on 2025 commitment.

    Super VIP active members growth
    11%YoY
    FY25

    Sustained double-digit growth, cornerstone of growth.

    Super VIP contribution to online spending
    52%
    FY25

    Demonstrate significantly higher retention and repeat purchase than regular customers.

    AI-powered customer service automated resolutions
    approaching 90%
    current

    Effectively automates routine interactions, improving speed and relevance.

    Total operating expenses
    RMB 4.9 billiondecreased by 3.7% YoY from RMB 5.1 billion
    Q4 FY25

    Total operating expenses for the quarter.

    Fulfillment expenses
    RMB 2.4 billiondecreased by 1.0% YoY from RMB 2.5 billion
    Q4 FY25

    Fulfillment expenses for the quarter.

    Marketing expenses
    RMB 873.7 milliondecreased by 6.1% YoY from RMB 903.3 million
    Q4 FY25

    Marketing expenses for the quarter.

    Technology and content expenses
    RMB 425.5 milliondecreased by 9.3% YoY from RMB 469.2 million
    Q4 FY25

    Technology and content expenses for the quarter.

    General and administrative expenses
    RMB 1.1 billiondecreased by 5.2% YoY from RMB 1.2 billion
    Q4 FY25

    General and administrative expenses for the quarter.

    Cash and cash equivalents and restricted cash
    RMB 24.1 billion
    as of Dec 31, 2025

    Balance at quarter end.

    Short-term investments
    RMB 5.8 billion
    as of Dec 31, 2025

    Balance at quarter end.

    Non-GAAP net income attributable to Vipshop's shareholders
    RMB 8.7 billioncompared with RMB 9.0 billion in the prior year
    FY25

    Full year results.

    Non-GAAP net margin attributable to Vipshop's shareholders
    8.3%stable as compared with that in the prior year period
    FY25

    Full year results.

    Non-GAAP net income attributable to Vipshop's shareholders per diluted ADS
    RMB 17.08increased to RMB 17.08 compared with RMB 16.75 in the prior year
    FY25

    Full year results.

    Customer growth
    faster than sales growth
    2026

    Expected to regrow for 2026 to offset the impact of a slightly rising return rate.

    Industry KPIs

    3
    MetricValueDetails
    Segment revenue mix5%%
    Subscription membership program9.8 millionmembers
    Operating income EBIT and adjusted EBITDARMB 2.90 billion (GAAP), RMB 3.2 billion (Non-GAAP)RMB

    Product announcements

    1
    ProductTypeDetails
    AI virtual try-on featurelaunch

    Deals & partnerships

    1
    Shan Shan OutletsExpansion of offline retail presence

    Expanding presence into more cities and regions to offset potential challenges from AI and leverage a stable offline business model.

    Risks & headwinds

    6
    Deceleration in December salesQ4 2025

    Q4 2025 net revenues were RMB 32.5 billion compared with RMB 33.2 billion in the prior year period.

    Mitigation: Focus on providing best value across shopping carts, refining synergies for cross-sell, and expanding offline presence.

    Weak winter apparel demandQ4 2025

    Online sales took a hit in Q4, especially in December, due to warm weather in China.

    Mitigation: Proactively shaping a resilient assortment, focusing on value proposition, and expanding into related categories.

    Delayed holiday shopping due to a later Spring FestivalQ4 2025

    Nobody was in a rush to shop for the holiday in Q4.

    Mitigation: Not explicitly stated, but Q1 recovery noted.

    Dynamic macro environmentOngoing

    Consumers are still, generally speaking, still cautious and selective and value conscious.

    Mitigation: Focused strategy and strong execution, commitment to sustainable profitability growth, off-price model resilience.

    Hypercompetitive online businessOngoing

    Not quantified.

    Mitigation: Looking for opportunities offline with Shan Shan outlets, adapting to AI trends, focusing on merchandising and supply chain reliability.

    Slightly rising return rateCurrent

    Not quantified.

    Mitigation: Aiming for customer growth to be faster than sales growth to offset this impact.

    What to watch in Q1 FY26

    5

    User Growth Momentum

    Next quarter (Q1 FY26) and 2026
    CurrentUnder pressure in Q4
    TargetRegrow for 2026, faster than sales growth

    Why it matters

    User growth is the foundation for sales growth and profitability, and is expected to offset rising return rates.

    [Interpreted] Customer growth is definitely our top priority. That's actually the foundation for sales growth and ultimately profitability. In Q4, we had thought we should have maintained the customer growth momentum. But due to expected slowdown in consumer activity, actually, customer growth is a little bit under pressure. We expect customer to regrow for 2026. And we ideally, we should see customer growth is actually faster than sales growth to offset the impact of a slightly rising return rate.

    Q&A highlights

    2

    Inquired about quarter-to-date business recovery after Q4 slowdown, especially with the late Spring Festival, and the sustainability of user growth. Also asked about the margin outlook for 2026, given 2025 pressure, and potential new investments.

    Management confirmed Q4 slowdown due to warm weather and late holiday, but noted a clear pickup in consumer activity in Q1, especially January and February, supporting the 0-5% revenue guidance. They expect stable margins for 2026, aiming to outperform.

    “[Interpreted] So, on the first question regarding the Q1 guidance, let's take a look at the Q4 first. I think our online sales actually took a hit in Q4, especially in December. It was way too warm in China in most regions for people to buy winter clothes. And since Chinese New Year is late this year, nobody was actually in a rush to shop for the holiday. Because of that, apparel didn't nearly as well as our other categories. But as we head into the first quarter, Q1, actually, we do see a nice recovery in our core business.”

    asked by Ronald Keung · answered by Eric Shen

    2 min read6 chapters

    Detailed Narrative

    01

    Strategic Reorganization and Merchandising

    Vipshop implemented a strategic reorganization of its merchandising and customer engagement teams in 2025 to enhance agility and decision-making, breaking down internal silos. The merchandising strategy focused on three pillars: enhancing customer relevance, building differentiation, and deepening category expertise. This enabled the company to acquire more quality deep discount inventory and align supply with evolving customer demand, strengthening its branded product portfolio.

    02

    Made for VIP Line and Optimistic Buying

    The 'Made for VIP' line emerged as a key differentiator, with sales growing over 40% in 2025 and contributing 5% of online apparel sales. Vipshop is streamlining these exclusive products to build a clear identity and convey high value. The company's optimistic buying approach secures a portfolio of high-demand, low-priced items from top global and domestic partners, combined with dynamic fresh sales, to drive customer excitement and repeat visits.

    03

    Customer Engagement and Super VIP Program

    A unified team now manages the entire customer journey, from brand acquisition to lifelong engagement, utilizing enhanced capabilities for user targeting. The Super VIP program remains a cornerstone of growth, with active SVIP members increasing by 11% to 9.8 million in 2025, contributing 52% of online spending. SVIPs demonstrate significantly higher retention and repeat purchases, providing a reliable revenue stream and attracting brand partners.

    04

    AI Integration and Operational Efficiency

    Vipshop is extensively deploying AI across its business to drive tangible value. Advanced AI applications in search, recommendations, customer service, and marketing have enhanced customer experience and empowered brand partners. AI-powered customer service automates routine interactions, with automated resolutions approaching 90%. AI-generated content is used in marketing to reduce production costs and optimize customer acquisition, and the AI virtual try-on feature has proven effective in driving engagement and loyalty.

    05

    Offline Expansion with Shan Shan Outlets

    Recognizing the hypercompetitive online business environment, Vipshop is expanding its offline presence through Shan Shan outlets. This business model has proven successful in terms of stable revenue streams and profitability. The company plans a mirrored pace of expansion into more cities and regions, expecting continued strong growth in sales, revenue, and profit from the Shan Shan business, which will help offset potential online challenges.

    06

    2025 Performance and 2026 Outlook

    Vipshop concluded 2025 with resilient profitability despite a slight deceleration in Q4 sales, primarily due to weak winter apparel demand and delayed holiday shopping. For Q1 2026, the company forecasts total net revenues between RMB 26.3 billion and RMB 27.6 billion, representing 0% to 5% year-over-year growth, driven by a pickup in consumer activity. Management expects margins to remain stable in 2026 and aims for customer growth to outpace sales growth.

    AI-generated summary of the company’s earnings call. Not investment advice.