Chinese online retailer JD.com on Thursday reported first-quarter revenue that beat market estimates, as price cuts and discount coupons helped boost sales that have been hit by cautious customer sentiment.
US listed shares of the company rose about 3.1 percent in premarket trading.
JD.com and traditional rival Alibaba Group have been lowering prices and offering discounts to maintain e-commerce 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 percent drop in quarterly profit, primarily due to valuation change from equity investment, though it beat revenue estimates.
JD.com’s non-GAAP net profit rose 3.4 percent to 8.9 billion yuan ($1.23 billion) and revenue was up 7 percent to 260 billion yuan in January-March, versus the 257.72 billion yuan average of 21 analyst estimates compiled by LSEG. Analysts see full-year sales growing 6.7 percent.
JD.com reported net income attributable to shareholders of 7.13 billion yuan, up nearly 14 percent from 6.26 billion yuan a year earlier.
JD.com said in March it would not buy the warehouse and store network of British electrical retailer Currys, a deal that could have helped it expand in the UK and Europe.
It has been less aggressive with international expansion than its Chinese peers, though with market watchers expecting slowing domestic growth, it may be prompted to search for new overseas revenue streams.
By Casey Hall and Akash Sriram; Editors: Christopher Cushing and Christina Fincher
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