Vipshop Stock Doesn't Earn Its Way Out of Its Slump

Vipshop Holdings (NYSE: VIPS) knows how to spot a bargain, but it remains to be seen if its investors have a similar knack. Shares of the Chinese online discounter of brand-name apparel initially slipped after the company posted second-quarter results on Wednesday afternoon.

Revenue climbed 30% to $2.58 billion, a tidy haul for most flash-sales specialists, and at the high end of the 26% to 30% growth it was targeting for the quarter three months earlier. Vipshop's top-line spurt was the result of a 23% uptick in orders -- it fulfilled 84.8 million orders during the three months ending in June -- enhanced by a 6% increase in average order size.

The double-digit revenue growth unfortunately didn't leave the rest of the income statement unscathed: Vipshop's adjusted earnings rose a more modest 8% to hit $0.17 a share. Analysts were expecting a profit of $0.19 a share, making this the first time in more than a year that Vipshop fell short of Wall Street's earnings estimates.

Continue reading

Source: Fool.com