Coatue Management and Vipshop Holdings
In 4Q14, Coatue Management exited its position in Vipshop Holdings (VIPS). Coatue sold 3,163,580 shares of Vipshop Holdings. It represented 0.61% of the fund’s 3Q14 portfolio.
Highlights of fourth quarter and full-year 2014 results
The company posted an increase of 108% in net revenue in 4Q14—compared to the same quarter last year. The growth was due to an increase in the number of active customers, new active customers, and total orders.
In 4Q14, the gross profit increased by 112% due to an increase in the company’s scale of business. During the fourth quarter, the operating expenses also increased by 115%.
Net income attributable to Vipshop’s shareholders increased by 122% and the net margin rose to 4.2% in the fourth quarter.
For full-year 2014, the net revenue increased by 122% and the gross profit increased by 130%. Net income attributable to Vipshop’s shareholders increased by 162% and the net margin rose to 3.6%.
Other Chinese e-commerce players in this space are JD.com (JD) and Dangdang (DANG). According to a report from iResearch and as the above chart shows, Alibaba’s (BABA) Tmall and JD.com were the top two B2C (business-to-consumer) players in China’s (FXI) online shopping market in 3Q14.
Financial guidance for 2015
In terms of outlook, in its earnings release the company said that it expects revenue to be $1.25–$1.3 billion for 1Q15.
Overview of Vipshop Holdings
Vipshop Holdings is China’s leading online discount retailer for brands. It offers high-quality branded products to consumers in China through flash sales on its website, vipshop.com. Flash sales represent a new online retail format that combines the advantages of e-commerce with discount sales channels.
In the next part of this series, we’ll focus on Coatue Management’s position change in Equinix.