[Abstract] vip.com said after high temperatures make consumers postpone the purchase of winter clothing, resulting in three quarter revenue lower than expected.
technology news (Le Tian) November 18th news, vip.com (NYSE Stock Code: VIPS) today announced that the board of directors authorized in November 17, 2015 in the next 24 months back up to about $300 million worth of American depositary receipts.
vip.com will be through the company’s cash reserves and cash generated by operating stock repurchase.
in the quarter ended September 30th, vip.com’s net cash, cash equivalents and restricted use of cash for operating activities amounted to $3 billion 540 million ($558 million).
as of September 30th, vip.com’s net cash from operating activities for the third quarter was $285 million (US $45 million).
recent stock fell sharply, especially in November 14th, vip.com released earnings warning, said the company’s total net revenue to 8 billion 700 million yuan in 8 billion 600 million yuan, an increase of 61% to 63%, lower than the previous estimate of 9 billion 100 million yuan to 9 billion 300 million yuan.
vip.com pointed out that the company’s third quarter revenue lower than expected, mainly because Chinese autumn temperatures are higher than the company expected, which allow consumers to postpone the purchase of relatively expensive winter clothing.
this makes the capital market panic, the day vip.com shares fell $5.02, or 26.96%, the share price of $13.60. The company fell to $12.86 intraday.
as of today’s close, vip.com’s stock price of $12.53, the lowest intraday price of $12.02, the lowest share price for the next 52 weeks. Sharp decline in stock prices is an important reason for vip.com to buy back shares.