Shares of JD.com Inc. saw a double-digit boost in pre-market trading after the Chinese e-commerce giant’s fourth-quarter sales beat Wall Street forecasts despite China’s slowing economy.
The Google-backed company’s net revenues totaled 134.8 billion yuan, 22 percent higher than a year earlier, in part due to China’s Singles Day — which was started by competitor Alibaba, but has become the world’s largest shopping event.
“In the fourth quarter of 2018, JD.com continued to outperform the industry across our key product categories,” said Richard Liu, chairman and ceo of JD.com. “Our investments in technology enhanced the customer experience and enabled greater operating efficiency.”
There were some damp spots in the earning release. While revenues rose more than expected, it was still the weakest quarterly growth since the company went public in 2015. The company also reported a net loss of RMB 4.8 billion yuan.
Like other Chinese companies, Beijing-based JD.com is attempting to grow its business at a time when China’s economy is slowing and consumers spending power is weakening amid the ongoing trade war with the U.S.
Nevertheless, it appeared optimistic. During a call with investors, JD.com chief financial officer Sidney Huang, said he was “cautiously optimistic” that consumer demand would improve in the second half of the year as various government incentive policies start to kick in.
This came as it unveiled a new venture — Toplife, its independent luxury shopping platform, will be integrated into Farfetch China.
As a part of the partnership, Farfetch will receive “Level 1” access on JD.com’s app. That means more than 300 million active JD.com users will have seamless connectivity with 1,000 plus luxury brands and stores on Farfetch.
In pre-market trading, shares in JD.com were up 14 percent to $29.69.