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Key Takeaways
- JD.com exceeded first-quarter earnings and revenue estimates on lower prices and increased promotions.
- The Chinese e-commerce firm benefited from rising demand for grocery items.
- CEO Sandy Xu said JD.com’s focus on user experience boosted the number of active users and engagement.
Chinese e-commerce giant JD.com (JD) on Thursday posted better-than-expected results after slashing prices and offering more promotions.
The company reported first-quarter adjusted earnings per American depositary share (ADS) of 5.65 Chinese yuan ($0.78), with revenue advancing 7% to CNY260.0 billion ($36.0 billion). Both were above forecasts.
Sales at its JD Retail unit gained 6.8% to CNY226.84 billion, and they jumped 14.7% to CNY42.14 billion at its JD Logistics division. However, sales slumped 19.2% to CNY4.87 billion at its New Businesses segment.
Chief Executive Officer (CEO) Sandy Xu explained that JD.com’s focus on user experience “helped to drive strong growth in the number of active users as well as user engagement.”
CFO Ian Su Shan added that the company’s general merchandise sales continued to pick up momentum because of “the robust recovery of (the) supermarket category.”
JD.com American depositary receipts (ADRs) were up just over 1% to $33.99 as of 12:25 p.m. ET Thursday. They are up about 18% in 2024.