Vipshop Holdings Limited (VIPS) Q3 2022 Earnings Call Transcript

Vipshop Holdings Limited (NYSE:VIPS) Q3 2022 Results Conference Call November 22, 2022 7:30 AM ET

Company Participants

Jessie Zheng - Head, IR

Eric Shen - Co-Founder, Chairman and CEO

David Cui - CFO

Conference Call Participants

Thomas Chong - Jefferies

Ronald Keung - Goldman Sachs

Vicky Wei - Citi

Andre Chang - JP Morgan

Eddy Wang - Morgan Stanley

Operator

Ladies and gentlemen, good day, everyone, and welcome to Vipshop Holdings Limited Third Quarter 2022 Earnings Conference Call.

At this time, I would like to turn the call to Ms. Jessie Zheng, Vipshop’s Head of Investor Relations. Please proceed.

Jessie Zheng

Thank you, operator. Hello, everyone, and thank you for joining Vipshop’s third quarter 2022 earnings conference call. With us today are Eric Shen, our Co-Founder, Chairman and CEO; and David Cui, our CFO.

Before management begins the prepared remarks, I would like to remind you that the discussion today will contain forward-looking statements made under safe harbor provisions of the U.S. 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 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 and non-GAAP net income per ADS are not presented in accordance with U.S. 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 Shen

Good morning, and good evening, everyone. Welcome and thank you for joining our third quarter 2022 earnings conference call.

We delivered strong earnings growth on net of revenue decline in the third quarter, as we carefully executed on our proven business model. During the quarter, macro and pandemic uncertainties weighed on the top line recovery, but customer trends improved month by month, and overall repeat orders and purchase frequencies hold up well. Through further optimization of operations, we achieved 50% profit growth and meaningful margin expansion year-over-year. As we moved quickly to adapt to external changes, we also pushed ahead with initiatives to reinforce the strength of our platform for the long run.