Vipshop Holdings Limited (NYSE:VIPS) Q2 2023 Earnings Conference Call August 18, 2023 7:30 AM ET

Company Participants

Jessie Zheng - Head of Investor Relations

Eric Shen - Co-Founder, Chairman and CEO

Mark Wang - Chief Financial Officer

Conference Call Participants

Thomas Chong - Jefferies

Alicia Yap - Citigroup

Natalie Wu - Haitong International

Eddy Wang - Morgan Stanley

Andre Chang - JP Morgan

Jialong Shi - Nomura

Operator

Ladies and gentlemen, good day, everyone, and welcome to Vipshop Holdings Limited Second Quarter 2023 Earnings Conference Call.

At this time, I would like to turn the call over 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 second quarter 2023 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 discussion today will contain forward-looking statements made in the 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 matters 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 second quarter 2023 earnings conference call. We delivered strong second quarter results on the top line with profitability well ahead of expectations. Our value proposition in discount retail is resonating with brand partners and custom lead by the well execute merchandising strategy, which has been the key to driving the growth.

The second quarter performance continued to be fueled by apparel category, which delivered over 30% GMV growth, reflecting broad-based strength. At the time, when consumers are making more regional decisions based on value for money, customer are coming back more and shopping with us more often. Paid membership growth remained robust. By the end of the second quarter, active Super VIP member increased by 23% contributing to about 44% of our online spending.