After dropping 3% today, Vipshop shot up more than 5% in after-market trading, due to extraordinary 2012 and fourth-quarter earnings. Vipshop attributed its growth to its continued efforts to optimize and expand its product offerings.
Net income for the fourth quarter came in at $6.3 million, or $0.12 per ADS, crushing estimates of $0.08 -- and far better than the $63.5 million loss in the prior year. Meanwhile, revenues increased by 185%, to $300 million. The growth came from a 177% increase in active customers, and a 191% increase in orders, now totaling 2.6 million and 8.8 million, respectively.
Fourth-quarter results were so phenomenal that they covered Vipshop's loss of $9.5 million, or $0.18 per ADS loss, for all of 2012. Analysts expected a loss of $0.12. However, net revenues did triple. Growing 205%, net revenues totaled $692 million. Active customers grew 176%, to 4.1 million, while orders grew 202%, to 21.9 million.
Looking forward, Vipshop believes it will continue to capitalize on China's growing population of online shoppers eager to buy branded products at bargain prices. In the next year, the company will remain focused on improving its offers and shopping experience for customers.
For Q1 2013 -- which includes forecast considerations associated with the Chinese New Year holiday -- Vipshop expects net revenues to range from US$265 million to US$270 million, representing a year-over-year growth rate of approximately 162% to 167%.
The article Why Vipshop Surged 5% in After-Market Trading originally appeared on Fool.com.
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