China’s e-commerce behemoth JD.com has reportedly exceeded Wallstreet’s quarterly revenue estimations, with the help of online sales & bringing their popular event ‘618’ back to life. This comes as China combats its deadliest Coronavirus outbreak while struggling with supply chain issues due to imposed lockdowns.
According to sources, JD.com posted second-quarter revenue of USD 39.07 billion, up by 5.4% year over year, beating the average forecast of USD 38 billion. Whereas, in the first half of this year, the company’s revenue increased 11% to closely USD 70 billion.
Additionally, sales in its product category, which includes online retail sales, increased 2.9% in the third quarter while marketing and logistics sales recorded 21.9% growth.
However, sources claimed that JD.com entered quick contractual deals with luxury companies which were essential to beat its profit estimations for the quarter. As for the forthcoming holiday quarters, the management has suggested keeping pushing harder into the luxury categories.
JD.com also believes that despite COVID-19 lockdowns, the logistics segment should gradually improve this quarter. Chief Executive Xu Lei made a statement before the U.S. market opened that since the e-commerce platform went public, the second quarter has been the most difficult and that the pandemic was the main cause of the difficulties.
On the contrary, JD Logistics, which runs over 1,400 warehouses and has over 200,000 internal delivery staff, is now extending its reach internationally. The logistics firm has also managed to establish its first automated warehouse called the "Los Angeles No. 2," in the U.S. in June.
Interestingly, the internet behemoth Tencent disclosed its first quarterly revenue decline since going public, along with job losses, while Alibaba had flat quarterly revenue growth for the first time.
Major Chinese tech firms have recently faced increased regulatory scrutiny, due to Covid-19 restrictions that have made consumers apprehensive and brought economic uncertainty.