Vipshop Holdings Limited (NYSE:VIPS) Q4 2023 Earnings Conference Call February 28, 2024 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

Alicia Yap - Citigroup

Eddy Wang - Morgan Stanley

Ronald Keung - Goldman Sachs

Andre Chang - JPMorgan

Operator

Ladies and gentlemen, good day everyone and welcome to Vipshop Holdings Limited's Fourth Quarter and Full-Year 2023 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 fourth quarter and full-year 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 the discussion today will contain forward-looking statements made under 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 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 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 reconciliations 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 fourth quarter and full-year 2023 earnings conference call. We delivered a strong finish to the year of 2023 with a set of results well ahead of expectations. This has been achieved with the successful execution of our merchandising strategy to see the opportunities in value spending amid strong seasonal demand.

In the fourth quarter, apparel categories were once again the bigger driver with a 29% growth in GMV year-over-year. For the full-year, apparel categories have been consistently outperforming the industry average up 24% from a year ago. That helped us close RMB200 billion in total annual sales for the first time in our history. We also gained strong momentum with high value customers. In the fourth quarter, active Super VIP members increased by 14% from a year ago and accounted for 46% of our online spending. On an annual basis, we had 7.6 million active Super VIP members, who purchased 45% on our platform. Our strategy is simple.