Vipshop Rallies as Goldman Sachs Says Buy Amid Growth

Vipshop Holdings Ltd. (VIPS) rallied to a one-week high after Goldman Sachs Group Inc. recommended buying the online fashion retailer, citing its significant growth potential.

American depositary shares of Vipshop climbed 8.2 percent to $149.30 in New York, extending the company’s surge this year to 78 percent. Vipshop has climbed 23-fold since its U.S. debut in March 2012. The Bloomberg China-US Equity Index of the most-traded Chinese stocks in the U.S. advanced 0.4 percent to 99.12.

The retailer’s share of the Chinese apparel market is expected to grow to 1.5 percent in 2016 from 1 percent this year, translating into revenue of $6 billion in 2016, Goldman Sachs analysts led by Weibo Hu wrote in a note dated yesterday. Vipshop on March 3 forecast first-quarter sales will double to as much as $650 million, above an average analyst estimate of $544 million at the time.

Vipshop’s “growing credibility as a leader in discount retail in China will allow it to introduce more global brands, thereby attracting more customers, creating a virtuous cycle,” the analysts said. “We expect the company to seek expansion into further product categories, such as maternal and baby products.”

To contact the reporter on this story: Alexandria Baca in New York at

To contact the editors responsible for this story: Tal Barak Harif at Marie-France Han, Rita Nazareth

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.