The office supplies retailer say it sacrificed some sales to improve online profitability. It also redesigned its business-facing e-commerce site, StaplesAdvantage.com.
Vipshop Holdings Ltd., the largest Chinese discount fashion e-retailer, booked $1.7 billion in sales in 2013, and reported its first annual profit.
Vipshop Holdings Ltd., the largest Chinese discount fashion e-retailer, says its revenue grew by 145% to over US$1.7 billion for the year ended by Dec. 31, 2013. The web-only retailer also reported its first annual profit, generating net income of US$52.3 million, compared with a net loss of US$9.5 million in 2012.
The Guangzhou-based company has been listed on the New York Stock Exchange since 2012 and reported its first profit in the first quarter of 2013.
Vipshop is one of the fastest-growing online merchants in China and ranks No. 8 in Internet Retailer’s newly published Internet Retailer China 500 Guide.
"We are very proud and excited to have exited 2013 with four quarters of consecutive profitability and strong momentum heading into 2014,” chairman and CEO of Vipshop Eric Shen says.
Vipshop attributes its rapid growth to a 129.8% increase in the number of active customers to 9.4 million from 4.1 million and a 124.1% increase in total orders to about 49.2 million from about 21.9 million.
To keep up its rapid growth, Vipshop says it is focused on strengthening its core operations, including expanding and optimizing its product offerings, ramping up warehousing capabilities and enhancing its merchandising and IT capabilities, according to Shen.
Vipshop is also growing by acquisition, having bought a 75% stake in cosmetics e-retailer Lefeng.com last month for $132.5 million from Lefeng’s parent company, Ovation Entertainment Ltd.
For the first quarter of 2014, the company expects its total net revenue to grow at approximately 106% to 109% year over year.
“With a successful year of robust growth, combined with our recent acquisition of Lefeng and the investment in Ovation, we're very excited to further expand and solidify our leadership in China's discount retail market as we head into 2014," Shen says.
For the year ended Dec. 31, 2013, Vipshop reported
- Net revenues increased by 145.1% for the full year of 2013 to about $1.7 billion from about $692.1 million in 2012.
- Net income attributable to ordinary shareholders was $52.3 million compared with a net loss of $9.5 million in the prior year period.
For the fourth quarter of 2013, Vipshop reported:
- Total net revenue increased by 117.3% over the prior year period to $651.0 million from $299.6 million in 2012.
- Net income increased by 300.0% to about $25.4 million from about $6.3 million in the prior-year period.
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