On Thursday, Vipshop (VIPS.US) shares declined, falling over 1.8% to $19.09 at the time of writing, underperforming the broader market. The company reported its Q3 2025 earnings, with core metrics slightly surpassing market expectations, demonstrating the resilience of its discount retail model amid sluggish consumer recovery.

Revenue for the quarter reached $3 billion, up 3.4% year-over-year and $30 million above estimates. Non-GAAP earnings per ADS stood at $0.42, $0.01 higher than expected, reflecting steady profitability.

In terms of business scale, gross merchandise volume (GMV) rose to RMB 43.1 billion, a 7.5% increase year-over-year, significantly outpacing revenue growth, indicating higher average order value. Active customers grew 1.3% to 40.1 million, while total orders increased 1.5% to 166.4 million, showcasing simultaneous expansion in orders and GMV despite slowing user growth.

For Q4, Vipshop expects revenue between RMB 33.2 billion and RMB 34.9 billion, representing flat to 5% year-over-year growth. While the guidance appears conservative, the company anticipates stable demand growth during the year-end promotional season.