Vipshop Holdings Limited (NYSE: VIPS) has declared the financial results of the third quarter of 2020. The company has revealed that it has recorded an increase of 18.2% in total revenue in the third quarter ended September 30, 2020. In the third quarter, the total revenue of the company was RMB23.3 billion as compared to the total revenue of RMB19.6 billion in the earlier year.
The increase which the company has recorded is because of the more active customers. Internet retail company has reported a year-over-year increase of 15.3% in its Gross Profit as its Gross Profit for the third quarter of 2020 was RMB4.9 billion as compared to the RMB4.2 billion in the previous year. VIPS’ Gross Margin for the third quarter of 2020 was 21.1% in contrast to the 21.6% of the Gross Margin in 2019.
Now if we look at the financial report of the company, it has disclosed the total operating expenses of RMB3.9 billion as compared to the Operating expenses of RMB3.4 billion in 2019. Its total operating expenses for the third quarter of 2020 dropped to 16.9% from 17.3% in 2019.
Its operating expenses include marketing expenses which were RMB1.1 billion, Technology and Content expenses which were RMB305.1 million, General and administrative expenses were RMB848.6 million, and lastly, the fulfillment expenses were RMB1.6 billion in the third quarter of 2020.
Turning our focus on its income in the third quarter of 2020, the company has generated an income from operations of RMB1.2 billion. It has reported an operating margin of 5.4% in the third quarter of 2020. If we look at its balance sheet and cash flows, it has shown the cash and cash equivalents and restricted cash of RMB9.6 billion (US$1.4 billion) and short-term investments of RMB4.9 billion (US$728.7 million).
Vipshop Holdings Limited has also provided the outlook for the fourth quarter of 2020. It is projected that the company will generate a total net revenue between RMB33.7 billion and RMB35.2 billion in Q4 2020.
Vipshop Holdings Limited (NYSE: VIPS) shares were trading up 6.50% during the trading session of Friday. Vipshop Holdings Limited share price went from a low point around $11.05 to briefly over $24.46 in past 52 weeks. VIPS market cap has remained high, hitting $14.59B at the time of writing.