Ahead of the US market open on August 25, Vipshop released its financial results for the second quarter of 2026. The company generated RMB 24.7 billion (USD 3.7 billion) in net revenue, while non-GAAP net income fell to RMB 392 million (USD 58.2 million) from RMB 2.1 billion (USD 311.8 million) a year earlier, mainly because of a one-time withholding tax adjustment related to historical dividend distributions.
According to its earnings report, Vipshop recognized about RMB 1.56 billion (USD 231.6 million) in withholding tax expenses in the second quarter related to historical dividend distributions from mainland China to Hong Kong.
Vipshop CFO Mark Wang said the adjustment related to dividend distributions remitted in prior years and was expected to be settled in the third quarter. Going forward, the company will continue to accrue dividend withholding tax at the statutory rate for onshore earnings allocated for offshore repatriation.
Wang added that the adjustment would not affect operating margins or pretax cash flows, while its impact on future net margin was expected to be minimal.
In its core business, Vipshop recorded gross merchandise value (GMV) of RMB 50.6 billion (USD 7.5 billion) in the second quarter, with 182 million orders. Its Super VIP (SVIP) membership base continued to grow and has now surpassed ten million users.
During the quarter, Vipshop expanded exclusive merchandise offerings for SVIP members through initiatives including SVIP private sales and SVIP trial offers. It also increased members’ access to differentiated products and pricing benefits as part of efforts to improve the experience for high-value users.
Vipshop’s Super Brand Day and Super Product Category Day campaigns both maintained double-digit year-over-year growth in the second quarter, while active SVIP users continued to account for more than 50% of the platform’s online sales.
A China Merchants Securities research report said Vipshop has built a stable core base of SVIP users by offering authentic branded goods at competitive prices, alongside services such as free returns and exchanges. Growth in both the core user base and its contribution to GMV supports the company’s long-term development, the brokerage said.
Across the first half of the year, Vipshop introduced a new series of campaigns built around different shopping occasions. The company used scenario-based merchandising to promote trend-driven categories including sports products and gifts.
Its Kuangmiao section continued to introduce well-reviewed products at deep discounts, helping increase sales through the section as well as repeat visits from users.
Vipshop also expanded its use of artificial intelligence across its operations. On the customer side, the company had previously introduced AI-enabled services including virtual try-on and intelligent customer service. In management and operations, Vipshop is moving from individual AI tools toward a platform spanning its major business systems.
The company has also reported improvements in supply chain management and day-to-day operations from the initiative.
Improvements in product mix, membership services, and user experience have helped increase transaction value on the platform. In the first half of 2026, Vipshop returned nearly USD 400 million to shareholders through dividends and share repurchases.
China Merchants Securities said Vipshop is expected to return at least 75% of its 2025 non-GAAP net income attributable to shareholders through annual dividends and share repurchases in 2026. The company continued repurchasing shares in the second quarter, which the brokerage said reflected confidence in its long-term operations and management’s focus on shareholder interests.
Alongside its second-quarter results, Vipshop’s board approved a new share repurchase program authorizing the company to buy back up to USD 1 billion of its American depositary shares or Class A ordinary shares within 24 months of completing its existing repurchase program.
Looking ahead, a Huatai Securities research report said Vipshop has strengthened its position among core consumers and increased its share of their spending by improving the SVIP service experience and differentiating its product supply. The brokerage added that continued shareholder returns could provide some support for the company’s valuation. Huatai Securities maintained its “buy” rating on Vipshop.
KrASIA features translated and adapted content that was originally published by 36Kr. This article was written by 36Kr Caijing.
Note: RMB figures are converted to USD at rates of RMB 6.74 = USD 1 based on estimates as of August 31, 2026, unless otherwise stated. USD conversions are presented for ease of reference and may not fully match prevailing exchange rates.