Vipshop Holdings (NYSE:VIPS) reported third-quarter sales of $2.95 billion, down by 9.2% year-on-year, which topped the Wall Street view of $2.91 billion.

Vipshop Holdings registered adjusted earnings per ADS of 35 cents, which beat the analyst consensus estimate of 33 cents.

Total orders for the quarter were 163.9 million, compared with 179.9 million in the prior year period.

Also Read: Exxon Mobil To Cut 400 Texas Jobs In Stages Through 2026

The number of active customers for the third quarter of 2024 was 39.6 million, down from 42.3 million a year ago.

Gross margin for the quarter increased to 24.0% from 23.6% in the prior year period. Gross profit declined 7.9% to 4.96 billion Chinese Yuan ($706.14 million).

GMV for the quarter was 40.1 billion Chinese Yuan versus 42.5 billion Chinese Yuan a year ago.

As of September 30, 2024, the company had cash and cash equivalents, restricted cash of $3.2 billion, and short-term investments of $222.3 million.

During the quarter, the company repurchased $275.0 million of its ADSs under its current $1 billion share repurchase program, effective through March 2025.

Eric Shen, Chairman and CEO of Vipshop, highlighted the company's swift response to address external challenges and seize growth opportunities amidst soft industry trends in discretionary categories during the third quarter. He noted early positive outcomes from adjustments that improved the merchandising portfolio and operational efficiency while driving double-digit growth in active Super VIP customers.

Despite the slow recovery in consumer spending, he emphasized a continued focus on long-term strategies and executing key retail fundamentals to support sustained growth.

Mark Wang, CFO of Vipshop, underscored the alignment of third-quarter results with expectations, driven by solid profitability through disciplined financial management. He detailed ongoing investments to enhance customer impact and growth while reallocating resources to create a more balanced business model.

Additionally, he highlighted the company's commitment to shareholder value, with $275 million worth of shares repurchased during the quarter and plans for a new $1 billion repurchase program following the full utilization of the current one.

Outlook: For the fourth quarter of 2024, the company expects its total net revenues of 31.2 billion Chinese Yuan – 32.9 billion Chinese Yuan, representing a year-over-year decrease of approximately 10% – 5%.