Vipshop Holdings Limited ( VIPS )  reported second-quarter sales of $3.7 billion, down by 3.6% year-on-year, which topped the Wall Street view of $3.66 billion.

Vipshop Holdings ( VIPS ) registered adjusted earnings per ADS of 54 cents, which aligns with the analyst consensus. The stock price slid after the print.

Total orders for the quarter were 197.8 million, compared with 213.8 million in the prior year period.

Gross margin for the quarter increased to 23.6% from 22.2% in the prior year period. Gross profit jumped 2.2% year over year to RMB6.3 billion ($872.6 million).

GMV for the quarter remained flat year over year at RMB50.6 billion.

As of June 30, 2024, the company had cash and cash equivalents, restricted cash of $3.0 billion, and short-term investments of $264.3 million.

Share Repurchase Program: During the quarter, the company repurchased $205.9 million of its ADSs under its current $1 billion share repurchase program,  which is effective through March 2025. 

The board has authorized a new share repurchase program under which the company may repurchase up to $1 billion for 24 months.

Outlook: For the third quarter of 2024, the company expects its total net revenues to be between RMB20.5 billion-RMB21.6 billion, representing a year-over-year decrease of approximately 10%-5% versus consensus of RMB22.9 billion. 

The discount retailer lost over 11% in the last 12 months as it battles a weak domestic economy.

Price Action: VIPS shares are trading lower by 7% to $13.04 premarket at last check Tuesday.