Vipshop (NYSE:VIPS) reported first-quarter earnings above expectations, but shares tumbled over 4% intra-day today after the company missed revenue estimates and issued underwhelming guidance for the second quarter.
The Chinese online discount retailer posted adjusted earnings per share of RMB4.66, ahead of the RMB4.36 consensus. However, revenue totaled RMB26.3 billion, falling short of the RMB26.53 billion forecast and growing just 1.9% year-over-year.
Investor concerns deepened with the company’s Q2 revenue outlook, which ranges from RMB25.5 billion to RMB26.9 billion. The midpoint of RMB26.2 billion came in below analyst expectations, signaling slowing momentum in consumer demand.
Despite the profit beat, the weak top-line results and cautious forward guidance triggered a selloff as markets repriced the company’s near-term growth potential.
