JD.com saw higher-than-expected sales growth during China's recent 618 mid-year shopping festival according to analysts' estimates, though growth still lagged last year's figures.
According to Citi analysts, JD.com's sales on its e-commerce platform rose 6-8% during the 618 festival period, beating Citi's expectations of 2-5% growth. However, this was still less than the 10.3% growth last year and 27.7% growth in 2021.
The 618 festival is an important gauge of Chinese consumer sentiment and spending power. While the combined gross merchandise value (GMV) for major e-commerce platforms increased 5.4% to 614.3 billion yuan, livestreaming e-commerce contributed 184.4 billion yuan in sales.
Analysts from Goldman Sachs and Jefferies said JD.com's 618 sales "slightly" or "surpassed expectations" and set new records, though they did not provide specific figures.
The festival period saw heavy competition with platforms offering billions of yuan in subsidies to attract consumers. Subdued consumer sentiment due to job and property market concerns points to challenges for China's economic recovery.
Meanwhile, May's retail sales growth of 12.7% missed estimates and slowed from April, indicating weakening consumption.
In summary, while JD.com's 618 sales beat analysts' expectations, growth was still below last year's levels. This, combined with sluggish overall retail sales, signals challenges for China's online retail sector and broader economic recovery.
