JD’s first-quarter revenue beats estimates
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Chinese online retailer JD.com on Thursday reported first-quarter revenue that beat market estimates, as deep price cuts helped boost sales that had been hit hard by cautious customer sentiment.
US listed shares of the company rose about 3.5 per cent in premarket trading.
JD.com and bigger rival Alibaba Group have been lowering prices and offering discounts to maintain 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% drop in quarterly profit, primarily due to valuation change from equity investment, though it beat revenue estimates.
Net revenue rose 7 per cent to US$36.02 billion in January-March, versus the $35.662 billion 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 $986.6 million, up nearly 14 per cent from $866.2 million a year earlier.
Questions & Answers
Q.What specifically contributed to JD.com's sales growth in the first quarter?
What specifically contributed to JD.com's sales growth in the first quarter?
Deep price cuts helped boost JD.com's sales. This strategy was implemented to counteract cautious customer sentiment and maintain market share in China, where consumers favour low-cost platforms.
Q.How did JD.com's first-quarter net income compare to the previous year?
How did JD.com's first-quarter net income compare to the previous year?
JD.com reported a net income attributable to shareholders of $986.6 million for the first quarter. This is an increase of nearly 14 per cent compared to $866.2 million in the same period a year earlier.
Q.What is the primary reason for Alibaba's significant drop in quarterly profit?
What is the primary reason for Alibaba's significant drop in quarterly profit?
Alibaba's 86% drop in quarterly profit was primarily due to a valuation change from equity investment. Despite this, the company still managed to beat its revenue estimates for the quarter.
Q.Which specific divisions has JD.com been expanding recently?
Which specific divisions has JD.com been expanding recently?
JD.com has been actively growing its logistics, electronics, and home appliances divisions. This expansion contributes to its strategy alongside offering discounts to maintain market position.
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