In 2025, Vipshop's revenue and net profit decline again. Will offline outlets be its growth opportunity?

【Daihe Finance Cube Reporter Chen Wei】On February 26, Vipshop released its unaudited financial results for the fourth quarter and the full year of 2025. According to the financial report, in 2025, Vipshop’s total net revenue was 105.9 billion yuan, a decrease of 2.3% year-on-year; the net profit attributable to the parent was 7.2 billion yuan, down 6.49% year-on-year.

From the user perspective, Vipshop has further strengthened its reliance on high-value SVIP users, with the platform maintaining 84.8 million active users throughout the year. While nearly flat compared to last year, the number of SVIP active users increased by 11.4% year-on-year, contributing to the platform’s sales share rising from 49% to 52%.

Vipshop’s revenue and net profit have declined for two consecutive years

Quarterly, Vipshop’s revenue declined year-on-year in three quarters of 2025. From the first to the second quarter, revenue decreased quarter-on-quarter; in the third quarter, revenue briefly turned positive (+3.4%), but in the fourth quarter, it fell back into negative growth. On the profit side, Vipshop achieved year-on-year growth in net profit attributable to the parent in both the third and fourth quarters of 2025. However, the net profit growth in the fourth quarter mainly depended on the reduction of operating expenses. The financial report shows that in Q4 2025, total operating expenses decreased by 3.7% year-on-year. While fulfillment expenses related directly to business volume were not significantly compressed, expenses for R&D, marketing, and management all declined, with cost control supporting profit improvement.

However, due to double-digit declines in net profit attributable to the parent in the first two quarters of 2025, Vipshop ultimately experienced a year-on-year decline in both total revenue and net profit for the full year of 2025, marking its second consecutive year of such declines. In 2024, the company’s net revenue was 108.42 billion yuan, and net profit attributable to the parent was 7.839 billion yuan, both lower than 2023’s 112.9 billion yuan and 8.2 billion yuan, respectively.

In user operations, Vipshop also showed polarization. The platform’s active users for the year totaled 84.8 million, a slight increase from 84.7 million in 2024, reversing the downward trend in annual active users. In contrast, the slow growth of regular active users was offset by an 11.4% increase in high-value SVIP users, reaching 9.8 million, up from 8.8 million in 2024. The contribution of SVIP sales rose from 49% to 52%, now accounting for half of the platform’s sales.

On the business side, Vipshop continues to focus on the core model of “brand discounts + limited-time sales.” In 2025, it introduced internationally renowned brands such as Alexander Wang and MUJI, advancing “Vipshop exclusive” collaborations. The key brand events, “Super Brand Day” and “Category Day,” achieved a 17% year-on-year growth. High-value SVIP users supported consumer demand. Meanwhile, AI technologies in search recommendations, intelligent customer service, virtual try-on, and other areas have been implemented to improve operational efficiency, with the problem resolution rate for user inquiries in intelligent customer service approaching 90%.

Is offline Outlets the key to growth?

Regarding future development, Shen Ya, Chairman and CEO of Vipshop, stated that the company will enhance strategic execution, business agility, and technological innovation, deepen brand cooperation, respond more efficiently to consumer needs, and continue consolidating its leading position in the discount retail industry.

Amid fierce competition from traditional e-commerce, social e-commerce, and live-streaming e-commerce, Vipshop has maintained a trend of quarterly profitability since Q4 2012, demonstrating the stability and resilience of its business model, with refined operations targeting SVIP users being crucial.

Although some analysts question its over-reliance on SVIP users for platform contribution, management stated during the earnings call that user growth remains the company’s top priority. It is expected that user numbers will recover in 2026, with growth rates ideally surpassing sales growth. The company also forecasts that in Q1 2026, total net revenue will be between 26.3 billion yuan and 27.6 billion yuan, representing approximately 0% to 5% year-on-year growth.

The company plans to further deepen SVIP loyalty through upgrades such as family benefits, building a lifelong value loop, while focusing on exclusive supply chains and digital experiences on its online platform to strengthen its value shopping moat.

In facing intense online e-commerce competition and potential impacts from AI, the management indicated that enhancing the customer experience across all channels, especially through offline formats like Shanshan Outlets, will be a key strategy to resist competition. Currently, Shanshan Outlets provide Vipshop with stable revenue streams and profitability. In 2026, Vipshop will expand its Shanshan Outlets business to more cities and regions, which will enhance overall business resilience and serve as an important component of the company’s stable income and profit growth.

Editor: Wang Shidan | Proofreader: Chen Xiaojun | Reviewer: Li Zhen | Supervisor: Gu Zheng