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Vipshop Holdings Limited (VIPS) operates as an online discount retailer for various brands in the People's Republic of China.
It offers a range of branded discount products, including apparel for women, men, and children; fashion goods; cosmetics; home goods and other lifestyle products; footwear; sportswear and sporting goods; luxury goods; and gifts and miscellaneous products.
The company provides its branded products through its Website vipshop.com, as well as its cellular phone application.
Vipshop in early 2014, spent nearly $200 million on two acquisitions. On February 14, Vipshop acquired 75% equity interest in Lefeng.com from Ovation Entertainment for $132.5 million. Lefeng owns and operates an online retail website specialized in selling cosmetics and fashion products in China.
This strategic investment provides Vipshop access to a consistent supply of Ovation branded cosmetic products, which are in high demand among Vipshop's growing user base. Vipshop's CEO said in the statement that about 75% of the company's customers are female. Shares have formed a bullish "cup & handle" and higher share prices are expected for this stock. The firm reports its quarterly results on November 19th. We expect a strong report from the company.
52-Week Trading Range: $7.00 - 24.62
Entry Point: $23.85
Stop Loss: $22.65
Target Price: $26.24
VIPS is down following its strong earnigs report. It should see a recovery today. If you still holding on to the shares, wait and we should see higher prices for the stock.
We are closing the VIPS position at $22.00.
