China’s JD.com feels pressure as sales of big ticket items slow
- Concerns of weakening growth momentum have pushed down JD.com shares by more than 44 per cent this year
Chinese e-commerce firm JD.com’s shares came under further pressure on Monday after the company reported its slowest quarterly revenue growth since its initial public offering in 2014.
JD.com, which is backed by Walmart, Alphabet’s Google and Tencent Holdings, has already lost nearly half of its market value this year as it fights intense competition for Chinese online consumers.
On Monday, it said slower sales in its core e-commerce business, particularly big ticket items, dented third-quarter earnings growth.
While revenue rose 25 per cent from the same period a year earlier, it lagged analysts’ forecasts and was well below previous growth rates, which peaked at over 60 per cent in 2015.
The company also forecast fourth quarter sales growth between 18 and 23 per cent, slightly below an average analyst estimate of 23.5 per cent.