JD.com soars after reporting a surprise profit
- Shares of JD.com rose as much as 8% in early trading on Tuesday after the company posted a surprising profit. Analysts had projected a quarterly loss.
- The company also reported a 23% jump in revenue from the same period last year.
- The sales growth was driven by new brand partnerships and the success of its June 18 anniversary sales event.
- The Chinese e-commerce platform has struck a number of partnerships with luxury fashion houses such as Prada, Mulberry, and Giuseppe Zanotti.
- Watch JD.com trade live.
Shares of JD.com, one of the largest e-commerce platforms in the world by sales, climbed as much as 8% in early trading on Monday after its quarterly earnings report.
The company reported a surprise profit amid analyst expectations for a net income loss. JD.com also posted a 23% jump in revenue from last year.Here are the key numbers from JD.com's second-quarter results:
Net income: $90.7 million, compared to the -$6.3 million expected by analysts
Revenue: $22 billion, compared to the $20.9 billion estimated by analysts
Active accounts: 321.3 million, up from 310.5 million last quarter
Investors appear to be putting greater weight on the company's growing sales.
The Chinese e-commerce giant boosted its e-commerce revenue in the second quarter by striking new partnerships with luxury brands like Prada, Mulberry, and Italian footwear brand Giuseppe Zanotti. According to JD.com's earnings release, more than 20 luxury fashion houses have started selling merchandise on its platform since April.Markets Insider is looking for a panel of millennial investors. If you're active in the markets, CLICK HERE to sign up.
The success of JD.com's June 18 anniversary sale, which is an 18-day promotional event that lasts from June 1 to June 18, also contributed to the company's sales growth during the period. Luxury fashion brand Prada launched first-party flagship stores on JD.com to sell its three main labels, Prada, Miu Miu, and Car Shoe during the annual sales event.
"JD's commitment to bringing users the best overall shopping experience continues to win over consumer mindshare," Chief Executive Officer Richard Liu said in a prepared statement. "We will remain focused on leveraging technology and innovation to enhance our offerings, increase efficiency and drive shareholder value for the long term."
JD.com also offers a paid membership program called JD PLUS that's similar to Amazon's prime membership. In June, JD.com launched a partnership with nineteen international hotel brands including WANDA hotels and resorts and InterContinental Hotels and Resorts to offer members special discounts and promotions to JD PLUS members.
JD.com was up 30% through Monday's close.