Vipshop Holdings Limited (VIPS), an online discount retailer for various brands in the People’s Republic of China yesterday reported their unaudited second quarter 2017 financial results.

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Vipshop reported second quarter gross profits of $569.4 million which was a 19.1% increase from the same quarter last year. The company also reported second quarter revenues of 42.58 billion a 30.3% increase from the same quarter last year.  

Vipshop Holdings Limited CEO’s  Comments

“We delivered solid operational results in the second quarter of 2017,” said Mr. Eric Shen, chairman and chief executive officer of Vipshop. “Specifically, our total active customers for the trailing twelve months ended June 30, 2017 reached 58.8 million, representing a 32% year-over-year increase. We are also delighted to witness improved average revenue per active customer during the quarter, which was a testament of our ability to effectively manage the lifetime value of our customers. In the past quarter, we made further progress with the trial for our new Super VIP paid membership program, aiming to increase our customer loyalty. We remain focused on strengthening our core capability in merchandising and exploring opportunities to diversify our product categories to improve user stickiness.”  PR Newswire

VIPS Technical Analysis

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VIPS opened trading yesterday at $11.26 which was up from the previous day’s trading close of $11.17. VIPS closed trading yesterday at $11.10 and spiked down after hours to $10.25, equivalent to an 8% decrease from the closing price. Taking a look at the daily chart we can see the last time VIPS traded below these levels we have to go back to July 10th when it traded at  $10.06.

Taking a closer look at the daily chart we can see that before the spike down VIPS had already been in an overall downward trend dating back to May 12th when it traded at $14.91. VIPS has a float of 424.53 million shares and traded below the normal daily trading volume on Wednesday.