Same‑store sales growth – According to the unaudited Q2 2025 results, Vipshop’s comparable‑store (same‑store) sales rose 4.2 % year‑over‑year. This marks a deceleration from the 7.5 % YoY growth recorded in Q1 2025 and the 9.2 % YoY growth reported in Q4 2024. The slowdown reflects the increasingly competitive discount‑retail landscape in China, where consumer spending is still being weighed down by slower disposable‑income growth and a shift toward lower‑margin promotional campaigns.
Trading implications – The modest same‑store sales expansion signals a softening of core top‑line momentum, which could pressure the stock in the near term. Technical charts show the stock near a recent resistance level around $12.50, with the 50‑day moving average crossing below the 200‑day average—a classic “death‑cross” that often precedes further downside. However, the company still delivered a 9.1 % net‑profit margin and has a strong cash‑flow profile, offering a defensive cushion. Traders could consider a short‑to‑mid‑term short position if the price falls below the 200‑day moving average (~$11.80) with a tight stop at $12.10, while keeping an eye on the upcoming Q3 guidance. If Vipshop can demonstrate a rebound in same‑store growth (e.g., >6 % YoY) and better inventory turnover, a long‑term accumulation at the current discount to its 12‑month average (~$13.20) could be justified.