Sales Performance and Revenue Outlook: Vipshop reported total net revenues of RMB 26.3 billion for Q1 2025, down from RMB 27.6 billion in the prior year, reflecting a year-over-year decline. The company forecasts revenues for Q2 2025 to be between RMB 25.5 billion and RMB 26.9 billion, indicating a year-over-year decrease of approximately 5% to 0%. The management maintains a hopeful outlook that growth will resume in the latter half of 2025.

SVIP Membership and Customer Engagement: The Super VIP membership (SVIP) program has demonstrated robust performance, with active SVIP customers increasing by 18% year-over-year, accounting for 51% of online spending. Management is focused on enhancing this program to further drive growth and engagement. They anticipate achieving double-digit SVIP growth throughout 2025, emphasizing plans to increase cross-category purchases and retention among existing members.

Margins and Profitability: Despite decreased sales, Vipshop managed to sustain solid profitability; however, gross margin fell slightly to 23.2% compared to 23.7% in Q1 2024. Operating income also declined to RMB 2.3 billion from RMB 2.8 billion year-over-year, with an operating margin of 8.7%. Management expects net margins to remain comparable to 2024 due to disciplined investments in customer and brand momentum.