Vipshop Holdings Ltd (VIPS) saw its stock price surge by 5.03% in pre-market trading on Friday, as investors show optimism ahead of the company's upcoming earnings report. The Chinese online discount retailer's shares gained traction amidst a mixed performance among Chinese stocks and ADRs.

The broader Chinese stock market showed varied results in early trading. While some prominent names like Bilibili, Nio, Alibaba, and Baidu saw gains, others such as JD.com and XPeng experienced slight declines. This mixed performance suggests that investors are selectively bullish on certain Chinese stocks, with Vipshop emerging as a standout performer.

Vipshop's impressive pre-market rally comes just days before the company is set to release its quarterly earnings report on May 20, 2025, for the period ending March 31. Analysts expect Vipshop to report earnings of CNY4.34 per share, although revenue is projected to decrease by 4.4% to CNY26.419 billion compared to the same period last year. Despite the anticipated revenue dip, the current analyst consensus maintains a "hold" rating on the stock, with a median 12-month price target of $16.50, significantly above its last closing price of $14.50. This positive outlook, coupled with Vipshop's history of frequently beating earnings estimates, may be fueling investor enthusiasm and contributing to the stock's pre-market surge.