JD.com (NASDAQ: JD) reported their highest ever quarterly profit of $151 million which is far above analyst forecast of a 213 million yuan loss. This marks a 39% rise in revenue which boosted the firm’s shares compared to a 807.9 million yuan loss in the third quarter last year. The company lost about 100 merchants due to competition during the promotion period for China’s biggest online sales event, “Singles’ Day” which ended on Saturday.
Even though JD expected apparel growth to remain consistent for the next two quarters, many brands left the platform and were all major Chinese clothing brands. The company accused their main rival, Alibaba, of engaging in coercive tactics that forced merchants to choose between the two online platforms.
JD.com gained $19 billion in total sales from the Singles’ Day festival while Alibaba reported over $25 billion in revenue. Third quarter revenue for JD reported at 83.8 billion yuan which topped a little over analysts’ prediction of 83.6 billion. However, gross merchandise volume growth still fell to the lowest rate in a year. The company predicts December quarter ending revenue to reach 107-110 billion yuan, an increase of 35%-39%.