Secoo Holding Ltd – ADR (NASDAQ: SECO) stock fell over 6.1% on 14th June, 2019 (as of 12:53 pm GMT-4; Source: Google finance). Income from operations was RMB21.4 million (US$3.2 million) for the first quarter of 2019, as compared to RMB23.3 million for the first quarter of 2018.
Operating profit fell by 8.2% in the first quarter of 2019, compared with the first quarter of 2018, due to the combined impact of revenue growth, higher gross margin and the increase of operating expenses. Non-GAAP net income, which excludes share-based compensation expenses, was RMB19.3 million (US$2.9 million) in the first quarter of 2019, compared to RMB34.5 million in the first quarter of 2018. Net income attributable to ordinary shareholders of Secoo Holding Limited for the first quarter of 2019 was RMB14.2 million (US$2.1 million), compared to RMB25.7 million for the first quarter of 2018. As of March 31, 2019, the Company had cash and restricted cash of RMB779.1 million (US$116.1 million).
SECO’s total revenues for the first quarter of 2019 grew by 46.5% to RMB1,175.4 million (US$175.1 million) from RMB802.5 million in the first quarter of 2018, mainly due to the continuous expansion of the operation, the lush offerings of merchandise and service combined with the creative and effective marketing activities driving the growth in the total active customers and total number of orders served during the period. GMV reached RMB2,206.5 million (US$328.8 million) for Q1 2019, representing an increase of 97.1% from RMB1,119.5 million for Q1 2018. Total number of orders was 647.6 thousand for Q1 2019, representing an increase of 111.6% from 306.1 thousand for Q1 2018. Number of active customers rose by 89.6% to 305.0 thousand for Q1 2019 from 160.9 thousand for Q1 2018.
For the second quarter of 2019, SECO expects total revenues to be in the range of RMB1.47 billion and RMB1.57 billion, which would represent an increase of approximately 20.5% to 28.7% on a year-over-year basis.
Meanwhile, during the first quarter, Secoo added over 40 brands to its authorized portfolio of global prestige line of beauty products. From the first quarter of 2019 to date, Secoo continued direct collaboration efforts, adding over 220 brands to its platform. In April 2019, Secoo collaborated with top fashion blogger and luxury shopper “Becky” to host the first of Secoo Bloggers Thematic Shows, Becky’s Choice lifestyle show, which launched its grand opening at Secoo’s offline retail center in Beijing.