China’s JD beats market expectations for both revenue and Watch V Onlineprofit in the first quarter of 2023, as earnings grew 7% to RMB 260 billion ($36 billion) compared to a year earlier, and net profit amounted to RMB 7.1 billion, a 12.7% increase. A low-price strategy and continuous discount campaigns throughout the year helped bring the retailer a revenue rebound. During an earnings call on Thursday, CEO Sandy Xu said general merchandise “had a great quarter,” with quarterly growth of 8.6% down in large part to the supermarket segment. Xu revealed that supermarket items recorded double-digit GMV and revenue growth in the first three months of this year, and said she expected it to remain an “important growth driver” for JD in the long run. JD Retail’s operating margin fell 0.5% year-on-year to 4.1%, signaling that the price wars have not significantly impacted the company’s main business. JD’s CFO told investors that the company believes business growth and profitability are “more reinforcing than contradictory.” [JD]
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