China's JD.com Inc posted better-than-expected quarterly revenue and forecast third quarter sales above Wall Street estimates on Tuesday, boosted by stronger sales in its online retail business.
Sales from its product segment, which includes online retail sales, rose about 21% to 133.52 billion yuan (€16.9 billion) during the quarter.
Slowing E-Commerce Revenue Growth
Both JD.com and bigger rival Alibaba Group Holding Ltd are seeking to diversify amid slowing e-commerce revenue growth at home - in part due to saturated markets in China's biggest cities, flagging consumer confidence from the US-China trade war.
For the third quarter, JD expects revenue between 126 billion yuan (€15.9 billion) and 130 billion yuan (€16.4 billion), the mid-point of which was above analysts' estimate of 126.21 billion yuan (€15.9 billion), according to IBES data from Refinitiv.
The company's total net revenue rose 22.9% to 150.28 billion yuan (€18.96 billion) in the second quarter ended 30 June. Analysts were expecting revenue of 147.49 billion yuan (€18.6 billion), according to IBES data from Refinitiv.
JD.com posted a net income attributable to ordinary shareholders of 618.8 million yuan (€78.1 million) compared with a net loss of 2.21 billion yuan (€280 million), a year earlier.
Excluding items, company reported net income of 2.30 yuan per American Depository Share compared with 0.33 yuan per ADS, a year ago.
News by Reuters, edited by ESM. Click subscribe to sign up to ESM: European Supermarket Magazine.
