Chinese e-commerce giant JD.com reported stronger-than-expected earnings for the first quarter, signaling a potential rebound in domestic consumer sentiment amid ongoing challenges in the retail sector, the Wall Street Journal reports.
The Beijing-based company announced on Tuesday that net profit rose 53% year-over-year to 10.89 billion yuan ($1.51 billion), surpassing the 8.87 billion yuan average forecast from analysts polled by FactSet. Revenue also beat expectations, climbing 16% to 301.08 billion yuan, ahead of the estimated 287.35 billion yuan.
“We saw a strong start to the year, with solid results on both the top and bottom lines,” said CEO Sandy Xu.
Xu attributed the performance to improving consumer sentiment and ongoing enhancements in JD.com’s supply chain and user experience.
The earnings beat comes as JD.com navigates a rapidly evolving e-commerce environment in China, marked by intensifying competition from emerging platforms such as Pinduoduo, run by PDD Holdings, and Douyin, the short-video app owned by ByteDance. These rivals have gained traction by offering innovative, interactive shopping experiences and focusing on value-conscious consumers, especially younger demographics.
Despite these pressures and broader concerns about global trade uncertainty, JD.com’s latest results suggest that consumer demand in China may be stabilizing or even recovering modestly, offering some relief to retailers after a period of caution and spending restraint.
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