- Though Dangdang (NYSE:DANG) beat Q1 revenue estimates, EPS of -$0.12 was well below a $0.04 consensus. In addition, the Chinese online retailer has guided for Q2 revenue of RMB2.3B ($371M), below a $378.6M consensus.
- Hurting Q1 EPS: Gross margin fell to 15.2% from Q4's 17.1% and Q1 2014's 18.2%. Dangdang blames "a larger contribution of general merchandise sales as a percentage of total net revenues and a decline in logistics revenue from third-party merchants." Fulfillment was 9.1% of revenue, marketing 4.3%, tech/content 2.8%, and G&A 2.3%.
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Business performance: Media revenue +9.5% Y/Y to $203.4M; general merchandise +71.8% to $143.2M; other revenue +1.9% to $11.1M. Active customers +46% Y/Y to 10.2M; total orders +29% to 21.3M (41% via mobile).
- Shares are less than $1.50 removed from a 52-week low of $7.49. The company's Q1-ending cash balance of $267.1M is equal to 32% of its $843M market cap.
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Q1 results, PR