Secoo Doubles its Quarterly GMV, Stock Falls on Enlarged Losses

Upscale retailer Secoo gained the cooperation with Prada and reported strong revenue.

Belinda Zhou
    Jun 13, 2019 4:16 PM  PT
Secoo Doubles its Quarterly GMV, Stock Falls on Enlarged Losses
author: Belinda Zhou   

The stock of Secoo Holding Ltd. (Nasdaq: SECO) fell 2 percent on Thursday to $7.56 per American depositary share on reports that the company doubled revenue in the first quarter, but reported a double-digit loss.

The Beijing-based luxury product and services platform company said its revenue rose 47 percent during the first three months to $175.1 million from the same period in 2018.

Secoo's gross market value (GMV) of orders of products and services jumped 97 percent to $328.8 million from that of 2018. In addition, the total number of quarterly orders increased by 111 percent from a year ago, totaling 648,000.

"Our first quarter results get the year off to a strong start with solid GMV and revenue growth, further demonstrating the sustained consumer interest in our premium lifestyle offerings," said Shaojun Chen, the chief financial officer of Secoo.

The company's net income reached $2.1 million, or 8 cents per American depositary share, representing 45 percent decrease year-over-year.

Secoo's operating and fulfillment expenses climbed by 109 percent and 72 percent, respectively. Secoo also reported a sevenfold increase in general and administrative expenses, amounting to $6.9 million.

"Leveraging both online and offline capabilities in the buildout of China's leading premium lifestyle platform, we're committed to broadening our brand relationships and improving customer experience, curating the luxury lifestyle while maintaining our industry leadership," said Rixue Li, chief executive officer of Secoo.

Secoo provides luxury products and upscale lifestyle services on its website, mobile applications, and offline centers. The company offers more than 3,000 global and domestic luxury brands.

In the first quarter alone, Secoo added more than new 220 brands to its platform, including luxury Italian designers Prada and Miu Miu.

Looking ahead, Secoo expects its total revenue in the next quarter to reach somewhere between 1.5 and 1.6 billion yuan (US$216 - $231 million), representing an increase of 21 to 29 percent.