JD.com Q1 Results Beat Estimates With Sales Up 39%
LONDON — Fueled by robust demand in China after the COVID-19 pandemic, JD.com logged better-than-expected results for the quarter ended March 31, 2021.
The e-commerce firm’s net revenue increased by 39 percent year-over-year to 203.2 billion renminbi, or $31 billion, and net service revenues jumped 73.1 percent to 27.9 billion renminbi, or $4.3 billion compared to the same period last year, beating analysts’ average estimate of 191.83 billion renminbi, according to data from Refinitiv.
Income from operations in the quarter was 1.7 billion renminbi, or $300 million, representing a 35.3 percent decrease year-over-year. Net income attributable to ordinary shareholders in the period was 3.6 billion renminbi, or $600 million, compared to 1.1 billion renminbi for the same period in 2020.
The site’s annual active customer in the 12 months ended March 31, 2021 increased 29 percent year-over-year to 499.8 million.
Richard Liu, chairman and chief executive officer of JD.com, said he is proud that “500 million active users rely on JD’s broad selection of quality products and best-in-class customer services to support every aspect of their lives.”
The company’s chief financial officer Sandy Xu added that JD.com is encouraged by the diversification of revenue streams with an increasing contribution from service revenues.
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“JD Retail’s operating margin further expanded during the quarter, as we continue to drive stronger operating leverage through technology and innovation,” she added.
During the period, JD.com formed an innovative alliance with Louis Vuitton, enabling searches of LV on JD.com to be redirected to Vuitton’s own e-commerce site, a first in the industry.
John Lobb and Marni also opened online flagships on the platform. The latter adopted JD.com’s omnichannel solution, which was made available to fashion accounts in September, allowing customers to purchase directly from Marni’s inventory with the products delivered by JD Logistics.
Lei Xu, CEO of JD Retail, said during the earnings call that for the upcoming 618 shopping festival, which will coincide with the 18th anniversary of JD.com, the company plans to help more than 230 brands achieve more than 100 million renminbi in sales.
He added that despite potential anti-monopoly crackdowns and challenges from competitors like Pinduoduo and Alibaba, “JD Retail, as the core business of JD.com, will continue to strive for high-end healthy growth in 2021 and serve as the cornerstone for JD.com’s overall development.”
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