JD.com reports better-than-expected sales as China's e-commerce stays resiliant

Published by MEXEM News

July 25, 2024 2:51 PM

(GMT+2)

Published - March 09, 2023 @ 4:13 PM (EET)

‍

China e-commerce giant JD.com (NYSE:JD) on Thursday reported a quarterly revenue increase of 7% after online consumer spending held up during an economic downturn.

The second-largest online retailer said net revenue for the quarter through December was 295.4 billion yuan ($42.8 billion), in line with analysts' projections of 295.5 billion yuan.

Adjusted earnings of 70 cents per US share easily beat estimates of 51 cents, according to data compiled by FactSet. In addition, net product revenue increased 1.2%, while net service revenue jumped 40.3%.

Chief Executive Lei Xu said,

"Looking ahead, amidst ever-evolving opportunities and challenges, we will stay focused on lowering costs, increasing efficiency, and constantly improving user experience."

Separately, JD.com plans to offer subsidies worth 10 billion yuan to shoppers on its platforms to tap new users ahead of an anticipated Chinese economic recovery that could help the firm meet the consensus estimates for 15% revenue growth in 2023 versus about 10% last year.

WHY IT MATTERS

Under the weight of China's stringent Covid control measures, JD and its larger rival, Alibaba Group Holding Ltd. (NYSE:BABA), have grappled with weak consumption sentiment.

In 2022's final three months, Alibaba reported a mere 2.1% increase in quarterly revenue, emphasizing the economic uncertainty even after China nullified Covid restrictions in December.

Moreover, in the first two months of 2023, China's exports and imports continued to decline, clouding the outlook for an economy recovering from the Covid years and waves of infection.

Over the past three months through Wednesday, JD's stock has dropped 19.4%, compared with the S&P 500's 4% gain and Hang Seng's 0.7% rise.
‍

ABOUT JD.COM

Founded by Richard Liu Qiangdon in 1998, JD.com Inc. is a holding company that mainly operates two segments in e-commerce. Its retail segment comprises online retail, online marketplace, and marketing services in China.

With its own online platform, the company also offers electronics products, home appliances, and other general merchandise categories.

‍

START TRADING TODAY

Ready to get started?

Start trading with the full package, from state of the art platform to free tool and favorable transaction fees.

JOIN US NOW

All investments involve risks, including the possible loss of capital

©️ MEXEM AFRICA (PTY) LTD (MEXEM AFRICA) is an authorized financial services provider (FSP 48325). All trades on the MEXEM AFRICA platform are subject to the legal terms and conditions to which you agree to be bound.

The MEXEM AFRICA platform enables users to invest in securities. MEXEM AFRICA acts as an agent for the issuance of whole shares, where the investor is the registered owner of those shares, entitled to dividends, participation in corporate actions, and all the economic benefits and risks associated with share ownership.

The availability of any share on the MEXEM AFRICA platform is based on various factors but is not an indication of value and does not mean that any share is an appropriate investment for you. Images are for illustrative purposes only and past performance is not necessarily an indication of future performance.
‍
The availability of any share on the browse shares page does not necessarily indicate any contractual relationship between MEXEM AFRICA and the listed company or the payment of fees for services. Brand logos are owned by the respective companies and not by MEXEM AFRICA. The use of a company’s brand logo does not represent an endorsement of MEXEM AFRICA by the company, nor an endorsement of the company by MEXEM AFRICA, nor does it necessarily imply any contractual relationship. Further investment disclosures are available on the MEXEM AFRICA website.

Read our Forms & Disclosures.