Vipshop Holdings Limited (NYSE:VIPS) delivered third-quarter earnings and revenue that exceeded expectations on Thursday, yet its shares edged 1.48% lower in premarket trade as the market reacted cautiously to the company’s forward guidance.

The Chinese online discount retailer reported adjusted earnings of RMB2.98 ($0.42) per ADS, modestly outperforming the consensus estimate of RMB2.91. Revenue rose 3.4% year over year to RMB21.37 billion ($3.0 billion), also beating expectations of RMB21.07 billion.

Despite the headline beats, sentiment appeared muted around the stock, with investors focusing on a slower growth trajectory.

Chairman and CEO Eric Shen highlighted the company’s progress, stating, “We successfully regained business growth in the third quarter, driven by positive customer momentum, especially double-digit growth in Super VIP members, and broad-based strength across core categories.”

For the fourth quarter, Vipshop projected revenue between RMB33.2 billion and RMB34.9 billion — implying growth of roughly 0% to 5% year over year. The midpoint of RMB34.05 billion sits slightly ahead of the RMB33.93 billion consensus.

Customer activity showed modest improvement. Active customers increased 1.3% to 40.1 million, while total orders climbed 1.5% to 166.4 million. Gross merchandise value (GMV) grew at a faster pace, rising 7.5% to RMB43.1 billion.

Gross profit came in at RMB4.9 billion ($689.6 million), down from RMB5.0 billion a year earlier, with gross margin easing to 23.0% from 24.0%.

CFO Mark Wang said the company remained encouraged by the quarter’s performance, noting, “In the third quarter, we are pleased to achieve better-than-expected top-line expansion and strong bottom-line growth. Our strategic yet disciplined investment in the business have effectively fueled customer and sales momentum.”

Vipshop continued its buyback activity during the quarter, repurchasing $24.6 million of ADSs under its ongoing $1.0 billion share repurchase program, which runs through February 2027.

Vipshop Holdings stock price

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