Chinese retailer JD.com reports Q1 revenue above estimates, JD.com, a prominent Chinese online retailer, announced its first-quarter revenue on Thursday, surpassing market expectations. The company attributed this success to strategic initiatives such as price cuts and discount coupons, which effectively bolstered sales. These measures proved crucial in counteracting the impact of cautious consumer sentiment on overall sales performance.
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JD.com and traditional rival Alibaba Group have been lowering prices and offering discounts to maintain e-commerce market share in the world’s second largest economy where consumers are gravitating toward low-cost, discount-focused platforms.JD.com has also been growing its logistics, electronics and home appliances divisions. On Tuesday, Alibaba reported an 86 per cent drop in quarterly profit, primarily due to valuation change from equity investment, though it beat revenue estimates.
JD.com’s non-GAAP net profit rose 3.4 per cent to 8.9 billion yuan ($1.23 billion) and revenue was up 7 per cent to 260 billion yuan in January-March, versus the 257.72 billion yuan average of 21 analyst estimates compiled by LSEG. Analysts see full-year sales growing 6.7 per cent.
JD.com reported net income attributable to shareholders of 7.13 billion yuan, up nearly 14 per cent from 6.26 billion yuan a year earlier.
JD.com said in March it would not buy the warehouse and store network of British electrical retailer Currys, a deal that could have helped it expand in the U.K. and Europe.
It has been less aggressive with international expansion than its Chinese peers, though with market watchers expecting slowing domestic growth, it may be prompted to search for new overseas revenue streams.
