Drivers: Vipshop's GMV declined 6.5% Y/Y to RMB37.6 billion. The number of active customers decreased by 6.6% Y/Y to 41 million. Total orders fell 2.7% Y/Y to 168.3 million.
Resilient Margins: The gross margin expanded 230 bps to 21.7%. The non-GAAP operating margin increased by 300 bps to 7.2%.
Non-GAAP earnings per ADS of $0.36 beat the consensus of $0.24.
Vipshop held $2.8 billion in cash and equivalents. It generated $101.9 million in operating cash flow.
Eric Shen, Chairman and CEO of Vipshop, stated, "In the third quarter, we demonstrated strong profitability through careful execution of our proven business model. Despite that the topline recovery was held back by macro and pandemic headwinds, our customer trend improved month by month."
Outlook: Vipshop sees Q4 revenue of RMB30.7 billion - RMB32.4 billion, representing a year-over-year decrease rate of approximately 10% - 5%.
Price Action: VIPS shares traded higher by 4.61% at $9.31 in the premarket session on the last check Tuesday.
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