U.S.-listed shares of JD.com (JD) fell 8.4% by market close on Monday, after the China-focused online retailer backed by Walmart (WMT) and Alphabet (GOOGL) posted weaker-than-expected third-quarter sales as investors continue to question consumer spending's strength in the world's second-largest economy.
JD.com said net income for the three months ending in September tripled from the same period last year to 3 billion yuan, or $418 billion, but noted that group revenues came in at 104.8 billion yuan -- missing analysts' forecasts despite rising 25.1% from last year.
"We are pleased to report solid results for the third quarter, with our core JD Mall business driving consistent growth under its highly experienced management team," said CEO Richard Liu. "JD's commitment to convenient, reliable service and high-quality, authentic products continues to translate into an increasingly loyal user base. Our 'Retail as a Service' strategy is also gaining traction as we provide a wide range of partners with innovative retail infrastructure solutions."
Still, the miss sent JD down 8.4% to close at $21.11 on the Nasdaq. The move extends the stock's year-to-date decline to around 50%.
The JD.com numbers echo those from rival Alibaba Group Holding Co. (BABA) , which posted stronger-than-expected second-quarter earnings last week, but cautioned that 2019 revenues would be weaker than it had originally forecast, citing "fluid macro-economic conditions."
Alibaba said diluted earnings came in at $1.11 per share, just ahead of the $1.07 consensus and up 12% from the same period last year. Group sales, while rising an impressive 54% from the same period last year to $12.4 billion, fell shy of the I/E/B/S Refinitiv forecast of $12.5 billion. Alibaba also it was was adjusting its fiscal 2019 revenue outlook by between 4% and 6% to a range of 375 billion yuan to 385 billion yuan, down from the 400 billion yuan level it suggested after its full year earnings in March.
JD.com did not mention any new developments in the allegations levied against CEO Richard Liu, who was arrested and released last in Minneapolis in September on a charge of "criminal sexual conduct" that his attorney, Joseph Friedberg, called "ridiculous."
Liu, 45, had been completing the final stages of an MBA program for international students at the University of Minnesota's Carlson School of Management when he was arrested late Saturday.
The billionaire founder of JD.com was released without having to pay bail, according to police records, and left America shortly afterwards. At present, there is no formal method of extradition between the United States and China that would compel him to return to face charges if they were ultimately brought by the states's district attorney.
(This article has been updated.)