--- title: "Vipshop (Minutes): Expect to return to positive growth in the second half of the year, returning 75% of profits to shareholders" type: "Topics" locale: "en" url: "https://longbridge.com/en/topics/29851832.md" description: "Below is the earnings call $Vipshops(VIPS.US) FY25 Q1 Minutes. For the earnings interpretation, please refer to "Vipshop: Falling to the Bottom Again, Is There Still a Buyback to Support This Time?" 1. Review of Key Earnings Information 1. Shareholder Return Plan: 2025 Commitment: Return no less than 75% of 2024 non-GAAP net profit (9 billion yuan). 2025 Returns to Date: Over $400 million returned to shareholders, including approximately $250 million in annual dividends and over $150 million in share repurchases. As of March 31, 2025..." datetime: "2025-05-20T13:45:37.000Z" locales: - [en](https://longbridge.com/en/topics/29851832.md) - [zh-CN](https://longbridge.com/zh-CN/topics/29851832.md) - [zh-HK](https://longbridge.com/zh-HK/topics/29851832.md) author: "[Dolphin Research](https://longbridge.com/en/news/dolphin.md)" --- # Vipshop (Minutes): Expect to return to positive growth in the second half of the year, returning 75% of profits to shareholders **Below is**$Vipshops(VIPS.US) **the earnings call minutes for FY25 Q1. For earnings analysis, please refer to《**[**Vipshop: Falling to the Bottom Again, Is There Still a Buyback to Support It?**](https://longportapp.cn/zh-CN/topics/29849385)**》** **1\. Key Earnings Highlights** ![0](https://pub.pbkrs.com/cms/2025/0/HXsErVnFAFn669eC6scUumFnnTrpi8m7.jpg?x-oss-process=style/lg) **1\. Shareholder Return Plan:** 2025 Commitment: Return no less than 75% of 2024 non-GAAP net profit (RMB 9 billion). 2025 YTD Returns: Over $400 million returned to shareholders, including ~$250 million in annual dividends and over $150 million in share repurchases. As of March 31, 2025, the company held RMB 28.9 billion in cash, cash equivalents, and restricted cash. **2\. User Operations:** Super VIP (SVIP) program saw active members grow 18% YoY, contributing 51% of online GMV; upgraded member benefits (e.g., "Gold Card" perks for hotel/travel services) cater to family users. **3\. Q2 Outlook:** Revenue guidance of RMB 25.5–26.9 billion, representing a YoY decline of -5%–0%. **II. Earnings Call Details** **2.2 Q&A** **Q: Given macro headwinds like tariffs, could management comment on monthly GMV trends in Q2 2025 so far and the full-year revenue/profit outlook?** **A:** Consumer sentiment has shown signs of improvement since January-February, with marginal recovery in March. Q2 (April onward) momentum is stronger. For full-year 2025, after a -5%–0% H1 trend, **we expect H2 growth to resume. Net margins should remain broadly stable vs. 2024.** **Q: Have export-oriented apparel products been redirected to domestic markets recently, potentially diverting demand to competitors?** **A:** Our tariff exposure is minimal, with negligible direct U.S. procurement—mostly **healthcare products** or non-U.S. goods. For exporters shifting focus domestically, we began collaborating in April to explore distributing their products to Vipshop users. This takes time due to differing standards (branding, certifications, etc.). **Q: Any updates on a potential Hong Kong secondary listing?** **A:** Updates will be disclosed when available. **Q: SVIP growth has been steady—what’s the strategy to sustain it? Any H2/2026 targets?** **A:** SVIP growth remains strong (double-digit for consecutive quarters). We’re **confident in maintaining double-digit SVIP growth for 2025**, driven by exclusive discounts during flash sales to boost retention. SVIPs’ GMV share will further increase. **Q: How has e-commerce competition evolved amid macro uncertainty?** **A:** Competition is intense. Our edge lies in **branded discount retail—we aim to become the online outlet for deep discounts**. Long-term, consumers prioritize value, quality, and service. **Q: Latest SVIP purchase frequency and ARPU trends?** **A:** Metrics are steady. **New SVIPs dilute ARPU temporarily**, but 2-year cohorts show smaller declines. We’re enhancing cross-category recommendations for family shoppers. **Q: Return rate trends?** **A:** Stable policies; return rates **rose ~2pp**. A **1pp annual increase is expected** as service expectations rise. **Q: Is the 2025 capital return guidance unchanged?** **A:** Since April 2021, we’ve returned \>$3B via buybacks/dividends ($400M YTD). We’ll return ≥75% of 2024 non-GAAP net profit as pledged. **Q: GMV impact from national subsidies?** **A:** Subsidies cover appliances (not our strength), contributing **~1% of GMV** with minimal financial impact. **Q: Post-Shanshan financing, any Shenzhen strategy shifts?** **A:** Synergies exist between our online discount retail and Shanshan’s **20 offline outlets (China’s top outlet operator)**. We’ve filed REITs applications to fund expansion. **Q: How to balance H2 marketing spend with margins?** **A:** **Marketing spend was 2.7% in 2024 (2.8% in Q1); we’ll cap it at 3%**. Growth is achieved efficiently via targeted partnerships. **Disclosures:** [**Dolphin Research Disclaimer**](https://support.longbridge.global/topics/misc/dolphin-disclaimer) ### Related Stocks - [VIPS.US](https://longbridge.com/en/quote/VIPS.US.md)