NEW YORK (TheStreet) -- Vipshop (VIPS) - Get Report stock is plunging by 27.60% to $13.48 in mid-morning trading on Friday, after the company announced preliminary financial results for the 2015 third quarter this morning. 

The company lowered its revenue forecast for the quarter to a range between RMB 8.6 billion and RMB 8.7 billion, down from the prior range between RMB 9.1 billion and RMB 9.3 billion.

Warm weather in China led to fewer purchases of relatively higher-priced fall and winter clothing items, and contributed to the downward revision in revenue expectations, the company said in a statement.

The updated guidance represents a year-over-year growth rate of roughly 61% to 63%.

The company is scheduled to report 2015 third quarter earnings results after the market close on Tuesday. 

Based in Guangzhou, Vipshop operates as an online discount retailer for brands in China.

Separately, TheStreet Ratings team rates VIPSHOP HOLDINGS LTD -ADR as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

We rate VIPSHOP HOLDINGS LTD -ADR (VIPS) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, impressive record of earnings per share growth and compelling growth in net income. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • VIPS's very impressive revenue growth exceeded the industry average of 45.5%. Since the same quarter one year prior, revenues leaped by 75.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • VIPSHOP HOLDINGS LTD -ADR reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, VIPSHOP HOLDINGS LTD -ADR increased its bottom line by earning $0.23 versus $0.09 in the prior year. This year, the market expects an improvement in earnings ($3.63 versus $0.23).
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Internet & Catalog Retail industry and the overall market, VIPSHOP HOLDINGS LTD -ADR's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Internet & Catalog Retail industry average, but is greater than that of the S&P 500. The net income increased by 144.1% when compared to the same quarter one year prior, rising from $26.39 million to $64.40 million.
  • The gross profit margin for VIPSHOP HOLDINGS LTD -ADR is rather low; currently it is at 24.96%. Regardless of VIPS's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, VIPS's net profit margin of 4.42% compares favorably to the industry average.
  • You can view the full analysis from the report here: VIPS

Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.