Shares of JD.com are popping in Tuesday morning trading after the Chinese retail giant posted surprising quarterly gains that contradicted expectations of a loss.
The Beijing-based firm — widely considered one of the largest e-commerce players in the world — saw its stock gain nearly 10% to $29.69 upon reporting second-quarter profits of $90.7 million, versus consensus bets of a $6.3 million loss. (Adjusted diluted earnings per American depositary share were 33 cents.) Revenues during the same period climbed 22.9% to $21.9 billion, also better than the $20.9 billion forecast by analysts.
More from Footwear News
- Coach, Givenchy Apologize Over T-Shirts Labeling Hong Kong, Taiwan as Separate Countries
- How the U.S.-China Trade War Is Upending Retail Cargo Imports
- Adidas CEO Warns About US-China Currency War's Impact on Business
JD’s online business got a boost from its buzzy partnerships with fashion and luxury houses, 20 of which have joined the platform since April, including French apparel labels Sandro and Maje, British leather goods company Mulberry and Italian high-end footwear brand Giuseppe Zanotti.
During its June 18 Anniversary Sale promotional event, JD announced a partnership with Prada, with three of its brands — Prada, Miu Miu and Car Shoe — opening dedicated stores on the site. It also attributed strong sales performance to its paid membership program, JD Plus, which offers customers benefits that include discounts, upgrades and loyalty points at international hotel brands as well as retailers such as Sam’s Club.
“Highlighted by our successful June 18 anniversary sales event, JD’s strong performance in the second quarter further demonstrated the resilience of our superior business model in a highly competitive industry,” chairman and CEO Richard Liu said in a statement. “JD’s commitment to bringing users the best overall shopping experience continues to win over consumer mindshare. We will remain focused on leveraging technology and innovation to enhance our offerings, increase efficiency and drive shareholder value for the long term.”
In its earnings report, JD noted that active customer accounts rose to 321.3 million in the 12 months ended June, compared with the 310.5 million for the 12 months ended March.
The results were a positive sign for the Chinese online retail sector, which has been in the midst of a slowdown following years of solid growth. The country’s economy has faced challenges in the face of a protracted trade war with the United States and a depreciating Chinese yuan.
How Google & Chinese E-Tailer JD.com Plan to Take On Amazon Next
The Dangers of the Digital Market — And How to Guard Against Online Fraud
Watch FN’s interview with these shoe designers.