NEW YORK (TheStreet) -- Vipshop (VIPS) - Get Report stock is retreating 10.99% to $10.96 on heavy trading volume on Wednesday morning after the Chinese e-commerce company reported revenue that fell short of estimates for the 2016 first quarter and issued guidance that indicating revenue growth is decelerating.
The online discount retailer's revenue increased 41% year over year to 12.17 billion Chinese yuan for the first quarter ended March 31, missing Thomson Reuters estimates of 12.32 billion yuan.
After yesterday's closing bell, the company posted earnings of 1.04 yuan per share that beat estimates of 98 yuan cents for the quarter.
Vipshop's revenue growth of 41% represents a steep decline from previous quarterly revenue that increased at least 63% for each quarter of 2015.
The company is projecting further deceleration in revenue for the second quarter with the lower end of guidance representing a 37% increase. The higher end of the outlook calls for a 42% rise.
Revenue guidance was set at 12.3 billion yuan to 12.8 billion yuan for the second quarter, in line with estimates for 12.7 billion yuan.
So far today, 15.74 million shares of Vipshop have been traded, nearly double its average daily volume of 8.29 million shares.
Separately, Vipshop has a "hold" rating and a letter grade of C+ at TheStreet Ratings because of the company's robust revenue growth, notable return on equity and reasonable valuation levels, which offsets generally higher debt management risk, poor profit margins and a disappointing stock performance.
You can view the full analysis from the report here: VIPS
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.