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Vipshop (VIPS) to Post Q1 Earnings: What's in the Offing?

Vipshop Holdings Limited VIPS is set to report first-quarter 2023 results on May 23.

VIPS expects first-quarter total net revenues between RMB 25.2 billion and RMB 26.5 billion, indicating growth of 0-5% from the prior-year quarter’s reported figure.

The Zacks Consensus Estimate for revenues is pegged at $3.77 billion, suggesting a decline of 5.3% from the year-ago reported figure.

The consensus mark for earnings per share is pegged at 39 cents per share, indicating growth of 18.2% from the prior-year reported figure.

Vipshop’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average earnings surprise being 22.91%.

Vipshop Holdings Limited Price and EPS Surprise

Vipshop Holdings Limited Price and EPS Surprise
Vipshop Holdings Limited Price and EPS Surprise

Vipshop Holdings Limited price-eps-surprise | Vipshop Holdings Limited Quote

Key Factors at Play

Vipshop’s growing efforts to strengthen product offerings and improve product procurement are expected to have benefited its first-quarter performance.

Solid execution of Vipshop’s merchandising strategy is likely to have bolstered its total active customer base in the to-be-reported quarter.

VIPS’ quarterly results are expected to reflect its deepening focus on high-margin apparel-related businesses, especially the discount apparel business.

The business is expected to have accelerated Vipshop’s gross merchandise volume (GMV) in the quarter under review.

Additionally, its successful transition to discount retailing remains a major positive. This is anticipated to have continued driving the momentum across repeated customers and helped attract new ones.

VIPS’ deep discount channels are expected to have bolstered its online GMV in the to-be-reported quarter.

However, weakening consumer demand in discretionary categories due to the challenging macroenvironment in China might have been a negative.

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Also, the impacts of intensifying competition in the online shopping market are anticipated to get reflected in the upcoming results of Vipshop.

What Our Model Says

Our proven model doesn’t conclusively predict an earnings beat for Vipshop this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here, as you see below.

Vipshop has a Zacks Rank #2 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are some stocks worth considering, as our model shows that they have the right combination of elements to beat on earnings this season.

Autodesk ADSK has an Earnings ESP of +1.76% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

ADSK is scheduled to release first-quarter 2024 results on May 25. The Zacks Consensus Estimate for ADSK’s earnings is pegged at $1.55 per share, suggesting a rise of 8.4% year over year.

Agilent Technologies A has an Earnings ESP of +0.40% and currently carries a Zacks Rank #2.

Agilent Technologies is set to report second-quarter fiscal 2023 results on May 23. The Zacks Consensus Estimate for A’s earnings is pegged at $1.27 per share, implying a 12.4% increase from the prior-year quarter’s reported figure.

Costco Wholesale COST has an Earnings ESP of +0.04% and a Zacks Rank #3 at present.

COST is scheduled to report third-quarter fiscal 2023 results on May 25. The Zacks Consensus Estimate for COST’s earnings is pegged at $3.32 per share, suggesting an increase of 4.7% from the prior-year quarter’s reported figure.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Agilent Technologies, Inc. (A) : Free Stock Analysis Report

Costco Wholesale Corporation (COST) : Free Stock Analysis Report

Autodesk, Inc. (ADSK) : Free Stock Analysis Report

Vipshop Holdings Limited (VIPS) : Free Stock Analysis Report

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