Vipshop (VIPS) to Report Q2 Earnings: What's in the Cards?
Vipshop Holdings Limited VIPS is set to report second-quarter 2023 results on Aug 18.
VIPS expects second-quarter total net revenues between RMB 27 billion and RMB 28.2 billion, indicating growth of 10-15% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for revenues is pegged at $3.87 billion, suggesting a decline of 5.6% from the year-ago reported figure.
The consensus mark for earnings per share is pegged at 46 cents per share, indicating growth of 24.3% from the prior-year reported figure.
Vipshop’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average earnings surprise being 28.1%.
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Key Factors at Play
Solid execution of Vipshop’s merchandising strategy is likely to have bolstered its total active customer base in the to-be-reported quarter.
Its booming online discount retail market in China might have been a tailwind for the company.
VIPS’ successful transition to discount retailing remains a major positive. This is anticipated to have continued driving the momentum across repeated customers and helped attract new ones.
Its deepening focus on high-margin apparel-related businesses, especially the discount apparel business, is expected to have been a positive.
The business is expected to have accelerated Vipshop’s gross merchandise volume (GMV) in the quarter under review. VIPS’ deep discount channels are expected to have bolstered its online GMV in the to-be-reported quarter.
Vipshop’s growing efforts to improve its product procurement process are expected to have benefited its second-quarter performance.
However, macroeconomic uncertainties might have been concerns. The impacts of intensifying competition in the online shopping market are anticipated to get reflected in the upcoming results of Vipshop.
What Our Model Says
Our proven model doesn’t conclusively predict an earnings beat for Vipshop this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here, as you see below.
Vipshop has a Zacks Rank #3 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some stocks worth considering, as our model shows that they have the right combination of elements to beat on earnings this season.
American Eagle Outfitters AEO has an Earnings ESP of +11.07% and a Zacks Rank #2 at present.
American Eagle Outfitters is scheduled to release second-quarter fiscal 2023 results on Sep 6. The Zacks Consensus Estimate for AEO’s earnings is pegged at 15 cents per share, which indicates a significant jump from 4 cents per share reported in the year-ago quarter.
American Woodmark AMWD has an Earnings ESP of +8.43% and currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
American Woodmark is set to report first-quarter fiscal 2024 results on Aug 29. The Zacks Consensus Estimate for AMWD’s earnings is pinned at $2.20 per share, indicating a growth of 28.6% from the prior-year quarter.
Bank of Montreal BMO has an Earnings ESP of +1.91% and a Zacks Rank #3 at present.
Bank of Montreal is scheduled to report third-quarter fiscal 2023 results on Aug 29. The Zacks Consensus Estimate for BMO’s earnings is pegged at $2.27 per share.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report
Bank Of Montreal (BMO) : Free Stock Analysis Report
American Woodmark Corporation (AMWD) : Free Stock Analysis Report
Vipshop Holdings Limited (VIPS) : Free Stock Analysis Report
