Vipshop Holdings Ltd
NYSE:VIPS

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Vipshop Holdings Ltd
NYSE:VIPS
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Price: 14.72 USD -0.88% Market Closed
Market Cap: 7.6B USD

Operating Margin
Vipshop Holdings Ltd

8.1%
Current
7%
Average
3%
Industry

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin
8.1%
=
Operating Profit
8.6B
/
Revenue
107B

Operating Margin Across Competitors

Vipshop Holdings Ltd
Glance View

Economic Moat
None
Market Cap
7.6B USD
Industry
Retail

Vipshop Holdings Ltd., a prominent player in the e-commerce landscape, has carved a distinctive niche for itself by centering its operations around online flash sales. This Chinese-based company, founded in 2008, leverages the allure of limited-time discounts to draw in consumers. By offering branded products at compelling prices, often much lower than their standard retail value, Vipshop creates a sense of urgency and exclusivity. The company's virtual shelves are stocked with a diverse array of products, ranging from apparel and beauty products to home goods and electronics, primarily targeted at the growing middle-class consumers in China. Vipshop's strategic partnerships with suppliers and brands allow it to curate a unique assortment of high-quality goods, capitalizing on the surplus inventory challenges faced by many brands. The business model of Vipshop is architected around the efficiency and immediacy of its online platform. It generates revenue by purchasing goods in bulk from partner brands, often at a discount, and then selling them at lower-than-market prices during its flash sales. What distinguishes Vipshop is its adept use of technology and data analytics to understand consumer preferences and optimize its supply chain. The company embraces a vertically integrated approach, managing its own warehousing and logistics, which reduces costs and enhances customer satisfaction through timely deliveries. This operational model not only boosts profit margins by minimizing distribution costs but also builds consumer trust through reliable service. As a result, Vipshop's ecosystem thrives on the principles of delivering value and maintaining a robust customer loyalty base, positioning it as a formidable force in the dynamic realm of e-commerce.

VIPS Intrinsic Value
27.54 USD
Undervaluation 47%
Intrinsic Value
Price
What is Operating Margin?

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin
8.1%
=
Operating Profit
8.6B
/
Revenue
107B
What is the Operating Margin of Vipshop Holdings Ltd?

Based on Vipshop Holdings Ltd's most recent financial statements, the company has Operating Margin of 8.1%.

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