Bloomberg News Loss Widens as Costs Increase in First Results After IPO

August 15, 2014 Inc. (JD:US), the Chinese online retailer with a business model similar to Inc. (AMZN:US), reported a wider loss because of higher costs in its first set of financial results since going public three months ago.

The net loss (JD:US) widened to 582.5 million yuan ($94.8 million) in the three months ended June from 28.3 million yuan a year earlier, the Beijing-based company said in a statement today. The loss was projected at 257.2 million yuan, the average estimate (JD:US) of six analysts compiled by Bloomberg.’s initial public offering that raised $1.78 billion in May has enabled the company to spend on warehouses, delivery vehicles and technology as it steps up competition to larger rival Alibaba Group Holding Ltd. Tencent Holdings Ltd. (700), which bought a stake in in March, is giving users of its instant messaging applications easier access to the e-commerce partner and generating traffic. and Alibaba have different business models. follows a model similar to billionaire Jeff Bezos’s where the company manages inventory and sells products such as home appliances, books and clothes directly to consumers while Alibaba provides the platform that brings buyers and sellers together. Alibaba is preparing for an IPO that could be the largest in U.S. history.

Tencent, Asia’s largest Internet company, in March agreed to buy a 15 percent stake in and then folded its e-commerce businesses into the venture.

To contact Bloomberg News staff for this story: Edmond Lococo in Beijing at

To contact the editors responsible for this story: Michael Tighe at Subramaniam Sharma, Aaron Clark

The Aging of Abercrombie & Fitch
blog comments powered by Disqus