Vipshop Q1 2025 Earnings Report

Vipshop EPS Results

• Actual EPS: N/A
• Consensus EPS: $0.66
• Beat/Miss: N/A
• One Year Ago EPS: $4.66

Vipshop Revenue Results

• Actual Revenue: N/A
• Expected Revenue: $26.41 billion
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

Vipshop Announcement Details

• Quarter: Q1 2025
• Date: 5/20/2025
• Time: Before Market Opens
• Conference Call Date: Tuesday, May 20, 2025
• Conference Call Time: 7:30AM ET

Vipshop (NYSE:VIPS) (NYSE:VIPS) is a leading online discount retailer in China, offering high-quality branded products at competitive prices through a time-limited, flash-sales model. The company provides consumers with access to a rotating selection of merchandise, combining the excitement of limited-time offers with curated brand partnerships to drive customer engagement and loyalty.

Vipshop’s platform features a diverse range of product categories, including apparel, footwear, cosmetics, home furnishings, digital electronics and other lifestyle goods. Merchandise is sourced directly from brand owners and authorized distributors, ensuring authenticity and cost savings for consumers. The company serves its members through a user-friendly website and mobile applications, supported by personalized marketing and customer service initiatives.

Founded in Guangzhou in 2008, Vipshop completed its initial public offering on the New York Stock Exchange in March 2012. Since then, it has built a nationwide logistics and distribution network across mainland China, operating multiple warehouses and fulfillment centers to enhance delivery speed and reliability. The company’s investments in technology and supply-chain optimization have been central to its ability to scale and maintain service quality.

Under the leadership of founder and CEO Eric Ya Shen, Vipshop continues to deepen relationships with brand partners and expand its service offerings, including cross-border e-commerce channels. The management team places a strong emphasis on digital marketing, data analytics and operational efficiency as it seeks to sustain growth and adapt to evolving consumer preferences in China’s dynamic retail market.

Vipshop Q1 2025 Earnings Call Transcript

Key Takeaways

• In Q1, Vipshop reported total net revenues of RMB26.3 billion, down from RMB27.6 billion a year ago, and saw a slight margin softening, though profitability remained within expectations.
• Active Super VIP customers grew 18% year-over-year and now account for 51% of online spending, with management targeting continued double-digit growth in SVIP membership throughout 2025.
• The company is doubling down on its “Made for Vipshop” merchandising strategy, onboarding over 200 brands and leveraging AI-driven recommendations and content to boost traffic and engagement.
• Vipshop reaffirmed its commitment to returning at least 75% of its 2024 non-GAAP net income to shareholders, having already distributed over US$400 million via dividends and share repurchases in 2025.
• For Q2 2025, management expects net revenues between RMB25.5 billion and RMB26.9 billion (down 5% to flat), while forecasting a rebound to growth in the second half of the year.

Presentation

[Operator]

Ladies and gentlemen, good day everyone and welcome to Vipshop Holdings Limited's First Quarter twenty twenty five Earnings Conference Call. At this time, I would like to turn the call to Ms. Jeshi Zhang, Vipshop's Head of Investor Relations. Please proceed.

[Jessie Zheng, Head, Investor Relations at Vipshop]

Thank you, operator. Hello, everyone, and thank you for joining Vipshop's first quarter twenty twenty five earnings conference call. With us today are Eric Shen, our Co Founder, Chairman and CEO and Mark Wang, our CFO. Before management begins their prepared remarks, I would like to remind you that the discussion today will contain forward looking statements made under the Safe Harbor provisions of The U. S.

[Jessie Zheng, Head, Investor Relations at Vipshop]

Private Securities Litigation Reform Act of 1995. Forward looking statements are subject to risks and uncertainties that may cause actual results to differ materially from our current expectations. Potential risks and uncertainties include, but are not limited to those outlined in our Safe Harbor statements in our earnings release and the public filings with the Securities and Exchange Commission, which also applies to this call to the extent any forward looking statements may be made. Please note that certain financial measures used on this call, such as non GAAP operating income, non GAAP net income attributable to Vipshop's shareholders and non GAAP net income per ADS are not presented in accordance with The U. S.

[Jessie Zheng, Head, Investor Relations at Vipshop]

GAAP. Please refer to our earnings release for details relating to the reconciliation of our non GAAP measures to GAAP measures. With that, I would now like to turn the call over to Mr. Eric Shen.

[Eric Ya Shen, Chairman of the Board of Directors and Chief Executive Officer at Vipshop]

Good morning and good evening everyone. Welcome and thank you for joining our first quarter twenty twenty five earnings conference call. Our first quarter results came in largely as expect. We continue to make progress on our path to return to growth. Our team stayed ahead our trend to offer more unique and quality of price seasonal items that were more relevant to customer preference.

[Eric Ya Shen, Chairman of the Board of Directors and Chief Executive Officer at Vipshop]

We see apparel category achieved positive growth in the first quarter. Super VIP membership extend its double digit growth. In the first quarter, active SVIP customer increased by 18% from a year ago and accounted for 51% of our online spending. This hardcore core for our customers show clear strengths in terms of sales and the revenue growth. We are keeping a close eye on the broader customer trend.

[Eric Ya Shen, Chairman of the Board of Directors and Chief Executive Officer at Vipshop]

We still see customers choose more willingness to spend on family and seasonal essentials and they are gradually catching up on spending in most discretion categories. We are remain anchored to the value proposition of discount retail for brands certainly upon our long standing merchandising strategy. We are also making change throughout organizations in how we align with growth priorities, operator in greater synergy and the driver unique compelling customer value. Our teams are restricted in the way that more aligned and efficient, so that they can act with speed to turn potential into growth. We will highlight the strategic priorities to grow the share of brand supply at exceptional value to invest in customer engaging initiative that drive traffic, frequency and the multi category purchases and to speed up technology advancement that driven value creation for business.

[Eric Ya Shen, Chairman of the Board of Directors and Chief Executive Officer at Vipshop]

Starting with merchandising, we are focused on the brand and the products where we have made the biggest differences for customers. It's key factors in driven traffic and customer growth. That's why we believe in the power of merchandising capability, which we are leveraged to quickly adapt to trends across fashion apparel, accessories and family lifestyle categories continuously giving customer more reasons to stay here. One of the best example in our made for VIP shop business, which continued to outperform in the first quarter, a total of more than 200 brands joined this program by the end of the March. We were close to the brand partner in transforming customized offering based on customer insights and changing trends.

[Eric Ya Shen, Chairman of the Board of Directors and Chief Executive Officer at Vipshop]

We were moving fast to deliver a more compelling brand of quality and value. We also have the prominent channel for mid for VIP shop. We expect it to become the to go place for customers to discover affordable on trend products that they cannot find anywhere else. In the first quarter, we also on view more on expect high fashion selection to keep customer coming back to see what's new. Customer were overjoyed with some of the best views they got, such as beverage coach and more or through the invite only provide sales, we are trying to gain traction with customers as a place for fresh sales and the treasure hunting.

[Eric Ya Shen, Chairman of the Board of Directors and Chief Executive Officer at Vipshop]

Turning to customers, we aspire to bring together the best of what they want in the unique shopping experience on top of the compelling array of product offering, customer know that we spend behind what we sell. That's why our SVIP customers are clearly growing more attracted to our platform because our affordable and reliable nature in our business. We have planned to make the loyalty program bigger and better. We are focused on how we could further differentiate it. For example, our customers are often family shoppers who loves travel.

[Eric Ya Shen, Chairman of the Board of Directors and Chief Executive Officer at Vipshop]

So new as second quarter SVIP member receive more relevant and rewarding life privileges such as gold card upgrade for Changlong, theme park and hotel accommodations and so on. We are also increased the power of AI throughout the customer experience in many way. We will be improve our AI powered algorithm to enhance the logic behind the search and the recommendations. We were leveraging general AI to create high impact content including smart mix and match content that make product page more compelling and automated customer review summary that highlight key insights to help shoppers. We will also apply AI to customer service, handling product inquires, generating personal related recommendations and potentially acting as a smart shopping assistant.

[Eric Ya Shen, Chairman of the Board of Directors and Chief Executive Officer at Vipshop]

Also by leveraging general AI, we generally target marketing creative for diverse platform and audience helping enhance customer acquisitions efficiencies. So we will continue to invest in opportunities for long term success. We look to set ourselves apart, provide more than what customer expect and building the unique experience. Against a backdrop of ongoing uncertainty, I'm confident in our teams. We who have never navigate through several years of volatility to keep pace with customer trends, double down on execution of our strategy and regain growth track.

[Eric Ya Shen, Chairman of the Board of Directors and Chief Executive Officer at Vipshop]

At this point, let me hand over the call to our CFO, Mark Wang to go over our financial results.

[Mark Wang, Chief Financial Officer at Vipshop]

Thanks, Eric and hello everyone. In the first quarter we sustained solid profitability despite sales pressure due to muted sentiment on discretionary spend. As we prudently increase the investment in building customer and brand momentum to seize growth opportunities, margins softened more distally compared with a year ago, but still held up healthily within our expectations. This underscored our capacity to drive operational efficiency, build out years of efforts in refining internal management. As Eric mentioned, we are driving important teams within the organization for our long term success.

[Mark Wang, Chief Financial Officer at Vipshop]

It will be an enhanced mindset across the business to fund growth, synergy and the efficiency opportunities we can take to the bottom line. We will remain focused on executing these strategic priorities with greater agility while maintaining discipline. Turning to our shareholder return program, our full year 2025 commitment remains unchanged. Returning no less than 75% of the RMB9 billion full year 2024 non GAAP net income to shareholders. Year to date, we have returned over US400 million dollars to shareholders, which include approximately US250 million dollars in annual dividend distribution and over US150 million dollars in share repurchase.

[Mark Wang, Chief Financial Officer at Vipshop]

Now moving to our detailed quarterly financial highlights. Before I get started, I would like to clarify that all financial numbers present below are in renminbi and all the percentage change a year over year change, unless otherwise noted. Total net revenues for the first quarter of twenty twenty five were RMB26.3 billion compared with RMB27.6 billion in the prior year period. Gross profit was RMB6.1 billion compared with RMB6.5 billion in the prior year period. Gross margin was 23.2% compared with 23.7% in the prior year period.

[Mark Wang, Chief Financial Officer at Vipshop]

Total operating expenses decreased by 1.6% year over year to RMB4.0 billion from RMB4.1 billion in the prior year period. As a percentage of total net revenues, total operating expenses were 15.3% compared with 14.8% in the prior year period. Fulfillment expenses decreased by 4.8% year over year to RMB1.9 billion from RMB2.0 billion in the prior year period. As a percentage of total net revenues, fulfillment expenses were 7.2%, which remained stable as compared with that in the prior year period. Marketing expenses increased by 6% year over year to RMB732.1 million from RMB690.9 million in the prior year period.

[Mark Wang, Chief Financial Officer at Vipshop]

As a percentage of total net revenues, marketing expenses were 2.8% compared with 2.5% in the prior year period. Technology and the content expenses decreased by 6.8% year over year to RMB449.1 million from RMB481.9 million in the prior year period. As a percentage of Total Net revenues, technology and content expenses were 1.7%, which remains stable as compared with that in the prior year period. General and administrative expenses increased by 2.3% year over year to RMB950.8 million from RMB929.1 million in the prior year period. As a percentage of Sonar revenues, general and administrative expenses were 3.6% compared with 3.4% in the prior year period.

[Mark Wang, Chief Financial Officer at Vipshop]

Income from operations was RMB2.3 billion compared with RMB2.8 billion in the prior year period. Operating margin was 8.7% compared with 10 in the prior year period. Non GAAP income from operations was RMB2.6 billion compared with RMB3.1 billion in the prior year period. Non GAAP operating margin was 10% compared with 11.1% in the prior year period. Net income attributable to Vipshop's shareholders was RMB1.9 billion compared with RMB2.3 billion in the prior year period.

[Mark Wang, Chief Financial Officer at Vipshop]

Net margin attributable to Vipshop shareholders was 7.4% compared with 8.4% in the prior year period. Net income attributable to Vipshop's shareholders per diluted ADS was RMB3.72 compared with RMB4.18 in the prior year period. Non GAAP net income attributable to RIP Shop's shareholder was RMB2.3 billion compared with RMB2.6 billion in the prior year period. Non GAAP net margin attributable to Vipshop shareholders was 8.8% compared with 9.3% in the prior year period. Non GAAP net income attributable to VIPshop shareholders per diluted ADS was RMB4.43 compared with RMB4.66 in the prior year period.

[Mark Wang, Chief Financial Officer at Vipshop]

As of 03/31/2025, the company had cash and cash equivalents and restricted cash of RMB28.9 billion and short term investments of RMB192.3 million. Looking forward to second quarter of twenty twenty five, we expected our total net revenues to be between RMB25.5 billion and RMB26.9 billion, representing a year over year decrease of approximately 5% to 0%. Please note that this forecast reflects our current and preliminary view of the market and operational conditions, which is subject to change. With that, I would now like to open the call to Q and A.

[Operator]

Please stand by while we compile the Q and A roster. Thank you. We'll now take our first question. First question is from Thomas Chong from Jefferies. Please go ahead.

[Thomas Chong, Managing Director at Jefferies]

Thanks management for taking my question. My question is about the recent consumer sentiment. Can management comment about the monthly GMV trend so far we are seeing in Q2 given a lot of events happening like a tariff, macro headwinds, etcetera, and how we should think about the revenue and the earnings outlook for the full year 2025? And my second question is about the upcoming June 13 campaign. Can management comment about the latest sentiment, and how the event is different from last year or similar to last year from an industry perspective? Thank you.

[Jessie Zheng, Head, Investor Relations at Vipshop]

Okay. Regarding your first question on consumption, I think in the past few months, we do see signs of improvement in overall consumption sentiment. After muted start in January and February, actually we do see some marginal improvement in March in terms of sales and into the second quarter, plus May to date, we see actually even better sales momentum. And for the 2025 full year outlook, we maintain our view that we are going to regain growth track in the second half, in the third quarter or the fourth quarter after negative five to zero growth trends in the first half. And on margins, we have a good amount of our overall profitability because of our disciplined investment and also management.

[Jessie Zheng, Head, Investor Relations at Vipshop]

So we will maintain our view on margins as well. We believe that on a full year basis, our net margins will be largely comparable as we had achieved in 2024. And in terms of the second question on the June 18 promotion, Actually, you may have noticed that the industry promotion has been quite lengthy. It lasted for a month. Consumers are growing a customer to these promotions and subsidies.

[Jessie Zheng, Head, Investor Relations at Vipshop]

Everything is readily available. They actually don't have to stockpile anything, but they do look for value or they focus on deals. So they are still responding to promotions if these are they do have shopping needs in terms of family and seasonal essentials, but the overall trend becomes quite normalized for everybody. So for VIP shop, we just focus on providing unique quality and off price value for money deals for consumers.

[Thomas Chong, Managing Director at Jefferies]

Thank you.

[Operator]

Thank you. We'll now take our next question. This is from Alicia Yap from Citigroup. Please go ahead.

[Alicia Yap, Analyst at Citigroup]

Hi. Thank you. Thanks management for taking my questions. I have a question related to the tariff. Understand that our business does not have a direct collaborations with the cross border sales and also the tariff.

[Alicia Yap, Analyst at Citigroup]

But just wonder if some of these excess supply from apparel that's supposed to aim for the export market that were temporary diverted to the domestic market in April or the last couple months that actually attract away some of the user demand to the competitor sites. Second quick question is that just wondering if management or company have any view about potential secondary listing in Hong Kong. Thank you.

[Jessie Zheng, Head, Investor Relations at Vipshop]

Let me translate first. In terms of the tariff question, we have very limited exposure to exports. And we do have a very limited amount of directive purchase from The US market, mostly healthcare products or non US origin products. But overall, the exposure is very small. And in terms of export companies trying to divert their export goods to domestic market, do see that because in April, we have already started to work with these export companies trying to see the possibilities to help them gain access to our customers on VIP shop.

[Jessie Zheng, Head, Investor Relations at Vipshop]

And but it takes time because there are a lot of different standards for export versus domestically manufactured products in terms of brand trademark and quality certification, etcetera. We believe over time, export companies, especially those with quality supply chain capabilities, we are choosing the mass market as one of the options for them to gain a wider base of consumers within China. And we are trying to grab any opportunities arising from that in terms of getting access to quality of brand supply, etcetera. But it takes time.

[Mark Wang, Chief Financial Officer at Vipshop]

Okay. Alex, thanks for your question regarding the Hong Kong listing. And we have been closely following change in the capital market developments and evaluating the option of Hong Kong listing internally. So we'll keep the market posted if there's any progress. Thank you.

[Operator]

Thank you. We'll now take our next question. This is from Wei Xiong from UBS. Please go ahead.

[Wei Xiong, Equity Research Analyst at UBS Group]

Thank you management for taking my questions. I have two questions. The first one is regarding our SVIP program. We can see the SVIP member growth has been very steady over the past few quarters. Can we please update our strategy here to further drive the SVIP growth going forward?

[Wei Xiong, Equity Research Analyst at UBS Group]

And do we have any goal for the second half and next year? And second, just a quick one, could management update the competitive landscape change you have seen over the past few weeks amend over the past past few months amid the macro uncertainty for the e commerce competition? Thank you.

[Jessie Zheng, Head, Investor Relations at Vipshop]

First on, SVIP customers, we do see very solid momentum in the growth of SVIP customers, and it has extended double digit growth for several quarters and continues to be so in Q1 and Q2 to date. And we think we have a very strong confidence that we can continue to achieve double digit growth for SBIP customers for the full year of 2025. And of course, we are also working on a lot of initiatives to drive the SBIP customer growth, especially in terms of merchandising. We're trying to provide more unique, exclusive off price product offerings all through invite only private sales to attract more SBIP customers. And by doing so, we believe that we will increase the retention of SBIP customers as well.

[Jessie Zheng, Head, Investor Relations at Vipshop]

And we do believe that over time, SBIP contribution in terms of online spending will grow from the current 51% to even a higher level in the foreseeable future. And second, in terms of industry dynamics, apparently it's a very hyper competitive environment. We believe that the only way for VIP shop to survive and to compete and to win in this e commerce sector is to remain anchored to the value proposition of discount retail for brands. And although there are a lot of business models in terms of how to sell the products, including live streaming platforms or shelf based e commerce, but the long term factors that drive consumers in terms where they choose to shop has always been great merchandise, great prices and great services. So we will continue to deepen our initiatives in terms to enhance the flywheel from merchandise to value to customer engagement. We believe that by remaining highly focused in discount retail for brands, we will gradually become the online outlet and this is the gateway for consumers to access deep discount product offerings. We believe we have the capabilities and the capacity to compete and win in this market.

[Operator]

Thank you. We will now take our next question. This is from Jialong Shi from Nomura. Please go ahead.

[Jialong Shi, Analyst at Nomura]

Management, I have three questions. And the first question is, what is the latest trend? Excuse me, what is the latest trend? What is the latest shopping frequency ARPU trend for Super VIP members? And the second question is, what is the latest trend for your return rate?

[Jialong Shi, Analyst at Nomura]

And third and last question is, despite all these challenges for the e commerce industry, just wonder if management still maintain the previous capital return guidance for this year? Thank you.

[Jessie Zheng, Head, Investor Relations at Vipshop]

Okay. First, let me translate your first two questions. In terms of SBIP operating metrics, it has been quite stable. And otherwise, we do see a small decline because of the dilutive impact from new SVIP customers who need time to ramp up their spending. But if you look at the two year cohort of SVIP customers, actually, the ARPU decline is much smaller.

[Jessie Zheng, Head, Investor Relations at Vipshop]

And we are trying to leverage more unique and exclusive merchandising to increase the loyalty, frequency and across category purchase opportunities for SBIP customers. And we do see a lot of potential there because a lot of because many of our SBID customers are family shoppers, so we look to shop across categories for the whole family. And it's just a matter of time to optimize our personalized recommendation and to increase these to translate this across category purchase potential into growth. In terms of return rates, overall, the return rate has been stabilized. I think in the past quarter, it has increased by a little bit over two percentage points.

[Jessie Zheng, Head, Investor Relations at Vipshop]

We have a very stable return policy for customers. And in the past six to seven years, we have been adhering to that policy. So that's why our return rate has moderated over time to a low single digit increase every year rather than dramatic increases on those other some of the other platforms.

[Mark Wang, Chief Financial Officer at Vipshop]

Okay, John, regarding your third questions, let me give you a full picture for this point. So although we are facing short term pressure and the dynamic industry change, we have a solid business model and with disciplined operations and solid execution. So we are confident that we can achieve relatively stable and healthy profit and cash inflow. So we have returned over US3 billion dollars to shareholders since April 2021 in the form of buyback and dividends. And year to date we have returned over US400 million dollars shareholders, which include approximately US250 million dollars in annual dividend distribution and over $150,000,000 through our buyback program.

[Mark Wang, Chief Financial Officer at Vipshop]

So I would like to emphasize for 2025 as we mentioned before, we are going to return no less than 75% of our full year 2024 non GAAP net income to shareholders in discretionary share repurchase and dividend distribution. Thank you.

[Operator]

Thank you. We'll now take our next question. This is from Eddie Wang from Morgan Stanley. Please go ahead.

[Eddy Wang, Analyst at Morgan Stanley]

Thank you, management, for taking my questions. I have two questions. First is about the trading policy. I noticed that we have a channel on the app which is focused on the trading program. So just wondering what kind of the sales and incremental sales or GMV actually coming from the trading program?

[Eddy Wang, Analyst at Morgan Stanley]

And how should we expect this benefit in the second quarter and the second half? And second question is, I just noticed that we have issued a rate for the Shanghai Online. So is there any kind of the change of the Shenzhen strategy after we get the funding fund rates? Thank you.

[Jessie Zheng, Head, Investor Relations at Vipshop]

So first on the trading program. The trading program mostly covers home appliances, which is not a strong feature for the IT shop. And also, consumer don't feel a lot buying home appliances on VIP shop. They don't have that kind of mindshare. So in total, we expect any contribution from the trading program will be around 1% of our total GME.

[Jessie Zheng, Head, Investor Relations at Vipshop]

So it's not going to be to have a meaningful impact on our financial performance.

[Mark Wang, Chief Financial Officer at Vipshop]

Heidi, thanks for your second question regarding the Shenzhen OS RISE program. And OS business in China is huge and fast growing. The OS business is a long proven and profitable offline business, which positioning is also discount retail for brand. Well, we have the shop is also a leading online discount retailer for brand. So definitely we have huge synergies with OLS business, not only from partner side, but also from the user side.

[Mark Wang, Chief Financial Officer at Vipshop]

At the end of last quarter, we have 20 Shenzhen analysts. Well, one of the largest analyst group in China. And the underlying assets, Mingbo Shenzhen OS has been in operation for fourteen years and is one of our best and popular OS in Shenzhen Group. So we have submitted the Reis application documents to the China Securities Regulatory Committee and the Shanghai Stock Exchange for their review and approval. And the raise could be regarded as a financing platform.

[Mark Wang, Chief Financial Officer at Vipshop]

We can respond by enroll more or less projects into race. And the funds can be used to reinvest into new or less projects and the merger and acquisition existing projects. So which will help us to expand our OS business more efficiently. Thank you.

[Eddy Wang, Analyst at Morgan Stanley]

Thank you.

[Operator]

Thank you. We'll now take our next question. This is from Roger Duan from Barclays. Please go ahead.

[Roger Duan, VP - Equity Research at Barclays]

Thank you management for taking my question. My question is on sales and marketing and margins for this year. Management previously mentioned that we want to have GMV return to positive growth in the second half of the year, while also maintaining a quite stable margin profile for the remainder of the year. So my question is on how should we think about your marketing campaign cadence and the balance between spending on marketing and maintaining margin profile for the year? Thank you.

[Jessie Zheng, Head, Investor Relations at Vipshop]

In terms of marketing spend, actual marketing spend has been very narrowed and we are going to see that for the rest of the year. If you look at our numbers in 2024, marketing spend as a percentage of total revenue was 2.7% and in Q1 it was 2.8%. But for the full year, we believe it's going to be within 3%. And we continue to evaluate the effectiveness of our marketing initiatives from a lot of perspective, especially the LTV side. So we don't believe that marketing spend is the only way to drive customer growth.

[Jessie Zheng, Head, Investor Relations at Vipshop]

We believe a combination of merchandise value and services to help drive customer growth. If you look at our Q1 and Q2 growth in new customers, actually they're growing nicely, but we actually don't spend so much on marketing. And of course, we are trying to diversify our marketing channels, including branding through TV sponsorships and talking and marketing on a lot of external channels. We are also expanding partnerships with major media outlets. And we are trying to look for the most valuable channels for us to invest, that we can have the best ROI and also have a sustainable growth in high quality customers.

[Jessie Zheng, Head, Investor Relations at Vipshop]

So basically, we have a very good command of our marketing spend, and we don't think it's going to be a drag for our margins.

[Operator]

Thank you. Due to time constraints, that concludes today's Q and A session. At this time, I will turn the conference back to Jessie for any closing remarks.

[Jessie Zheng, Head, Investor Relations at Vipshop]

Thank you for taking the time to join us today. If you have any questions, please don't hesitate to contact our IR team. We look forward to speaking with you next quarter.

[Operator]

This concludes today's conference call. Thank you for participating. You may now disconnect.

Participants

Executives

• Jessie Zheng, Head, Investor Relations
• Eric Ya Shen, Chairman of the Board of Directors and Chief Executive Officer
• Mark Wang, Chief Financial Officer

Analysts

• Thomas Chong, Managing Director at Jefferies
• Alicia Yap, Analyst at Citigroup
• Wei Xiong, Equity Research Analyst at UBS Group
• Jialong Shi, Analyst at Nomura
• Eddy Wang, Analyst at Morgan Stanley
• Roger Duan, VP - Equity Research at Barclays