China's JD.com, Inc. reported third-quarter revenue on Monday that fell short of analysts' estimates on sluggish sales in its core e-commerce business.
Revenue was 104.8 billion yuan (€13.2 billion) for the quarter ended 30 September, compared with an average estimate of 106.2 billion yuan (€13.4 billion) from 22 analysts, according to IBES data from Refinitiv.
JD.com's sales volumes are seasonally lower in the third quarter, as it ramps up to its November Singles' Day promotion period. This year, it sold 158.9 billion yuan (€20 billion) in goods during the month-long event – up 17% from a year earlier.
Weakening Growth Momentum
Net income for the quarter was $418.9 million, or 30 cents per American depositary share.
Concerns of weakening growth momentum have pushed JD.com shares down by more than 44% this year.
Shares of its bigger rival, Alibaba Group Holding, have shed 11%.
Both firms are making efforts to reach new consumers in South-East Asia and rural China, as demand tapers off in big cities. Earlier this month, Alibaba lowered its forecast for full-year sales, citing economic uncertainty linked to the trade war with the US.
JD.com has said that it will move its warehouse business into a separate unit, offering logistics management to third-party brands as well as its own platform, in a bid to boost income.
News by Reuters, edited by ESM. Click subscribe to sign up to ESM: European Supermarket Magazine.
