Discount e-commerce company Vipshop Holdings Limited (VIPS.US) released earnings last Thursday showing the company has experienced five consecutive quarters of revenue decline. To stabilize investor confidence, the company stated that business conditions are stabilizing and revenue growth is expected to resume in the near term.

The financial results showed quarterly revenue of 25.8 billion yuan, down 4% from 26.9 billion yuan in the same period last year. Net profit also declined from 1.9 billion yuan in the prior year period to 1.5 billion yuan, representing a 21% year-over-year decrease. Both quarterly active users and total order volume fell compared to the same period last year, though gross merchandise volume (GMV) bucked the trend with 1.7% growth.

As business operations stabilize, the company expects to return to a revenue growth trajectory in the third quarter. Management forecasts third quarter revenue in the range of 20.7 billion to 21.7 billion yuan, representing growth of 0% to 5%.

Following the earnings release, Vipshop's stock price surged 5.9% on Thursday, though it gave back some gains on Friday. The stock has gained approximately 28% year-to-date.