VIPS: Improving Demand for Apparel Drive Better 3Q20 Performance

VIPS will report 3Q20 results on November 13th before the markets open with a 7:30am EST conference call. We are positive into Vipshop’s 3Q20 earnings. While fashion category did not enjoy high growth during China’s e-commerce hike in 2Q20, it significantly improved in 3Q20. VIPS has been increasing its efforts to promote KuaiQiang (快抢) as one of its growing channels. Based on our data and calculations, we believe VIPS’s 3Q20 revenue is likely to be at least in line but highly likely to be better than consensus at RMB21.6B (10.3% Y/Y growth), which is at the high end of its guidance (RMB20.6B – RMB21.6B).