Vipshop Holdings (VIPS) Stock Falls on Light Guidance

NEW YORK (TheStreet) -- Shares of Vipshop Holdings (VIPS) were falling 5.9% to $25.08 Thursday after the Chinese online discount retailer issued a light guidance for the second quarter.

Vipshop said it expects to report revenue of RMB 8.7 billion to RMB 8.9 billion for the second quarter, or about $1.4 billion to $1.43 billion. Analysts surveyed by Thomson Reuters expect the company to report revenue of $1.45 billion for the second quarter.

The light guidance comes along with Vipshop's positive first quarter result in which the company reported earnings of 13 cents a share, above analysts' estimates of 10 cents a share. The company said revenue fell year over year to $1.39 billion, but above analysts' estimates of $1.29 billion for the quarter.

"We are very pleased with our robust first quarter 2015 financial and operational results, which were largely driven by our improved brand recognition among customers, smooth execution of our mobile initiatives, continued operational improvements as well as further enhanced shopping experience, as evidenced by the significant year-over-year growth in total repeat customers," Chairman and CEO Eric Shen said.

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 multiple 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, compelling growth in net income and solid stock price performance. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."

You can view the full analysis from the report here: VIPS Ratings Report

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