11:01 AM EDT, 08/15/2024 (MT Newswires) -- JD.com ( JD ) reported higher second-quarter revenue on Thursday driven by gains in retail and logistics, while the e-commerce retailer's earnings surged well ahead of analysts' expectations.

Revenue was up 1.2% in the three months through June 30 to 291.4 billion renminbi ($40.7 billion), but that was just shy of the consensus on Capital IQ for 291.7 billion renminbi. Non-GAAP net income jumped 74% to 9.36 renminbi, besting the Street's view for 6.19 renminbi.

JD Retail revenue rose to 257.07 billion renminbi from 253.28 billion renminbi a year earlier. Logistics revenue climbed 7.7% while new business fell 35% mainly from "adjustments" in its Jingxi low-cost shopping platform, Chief Financial Officer Ian Su Shan said on a call with analysts, according to a Capital IQ transcript.

Electronics and home appliances revenue fell 4.6% year over year while general merchandise rose 8.7%, aided by gains in the supermarket segment, Chief Executive Sandy Ran Xu said on the call. The US-listed shares of the company were up almost 4.7% Thursday.

"Despite mixed top line performance, we saw broad-based profitability improvement across many categories and segments, which effectively contributed to record highs" in non-GAAP operating profit and net profit attributable to ordinary shareholders, Xu said. The gross margin climbed 137 basis points to 15.8%, also a record high, she said.

Total quarterly active customers grew "at (a) double-digit pace year-on-year" for the third straight quarter, Xu said. Overall shipping frequency and volume on the platform also grew by double digits, but Xu said average order value declined "as a result of soft consumer spending as well as our low price strategy, category mix shift and wide range of free shipping service."

JD.com ( JD ) aims to speed up its topline growth "to outpace the growth of the total retail sales of China for the full year," the CFO said. "We are confident to achieve a healthy growth of our full year profit," Shan added. "We believe this is the right approach for the current environment and to ensure sustainable growth for the long run."

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