(Reuters) – Chinese online retailer JD.com on Thursday reported first-quarter revenue that beat market estimates, as deep price cuts helped boost sales that had been hit hard by cautious customer sentiment.
U.S.[listed shares of the company rose about 3.5% in premarket trading.
JD.com and bigger rival Alibaba Group have been lowering prices and offering discounts to maintain market share in the world’s second largest economy where consumers are gravitating toward low-cost, discount-focused platforms. JD.com has also been growing its logistics, electronics and home appliances divisions. On Tuesday, Alibaba reported an 86% drop in quarterly profit, primarily due to valuation change from equity investment, though it beat revenue estimates.
Net revenue rose 7% to 260 billion yuan ($36.02 billion) in January-March, versus the 257.72 billion yuan average of 21 analyst estimates compiled by LSEG. Analysts see full-year sales growing 6.7%.
JD.com reported net income attributable to shareholders of 7.13 billion yuan, up nearly 14% from 6.26 billion yuan a year earlier.
($1 = 7.2182 Chinese yuan renminbi)
(Reporting by Akash Sriram in Bengaluru and Casey Hall in Shanghai; Editing by Christopher Cushing)
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