Alibaba exceeds expectations | RetailDetail

Alibaba exceeds expectations

Alibaba exceeds expectations

Chinese Alibaba has trumped analysts’ turnover and profit expectations with its first quarter results. Its profit even doubled compared to the year before.

Strong growth in international markets

The company’s total turnover jumped up 56 % to 50.18 billion yuan (6.4 billion euro), significantly better than what analysts had expected. Its first quarter profit also spiked, nearly doubling to 14 billion yuan (2.3 billion euro). The downside is that only its online sales generate a profit, because every other division is still onerous, mainly because of enormous marketing efforts.


Its eCommerce turnover grew 58 % compared to the year before and is the company’s prime source of income, representing 85 % of the group’s total turnover. The Cloud Computing division even published a 96 % growth, although the other divisions also experienced sizeable turnover growth.


Alibaba still generates 73 % of its turnover from its home territory, China, but its growth pace is significantly lower than in international markets. Alibaba’s turnover abroad grew 136 % compared to a “mere” 57 % in China. AliExpress and Lazada’s expansion were the main catalysts for turnover increases abroad.

Questions or comments? Please feel free to contact the editors

Gerelateerde items acquires Eastern European competitors


Fast food supplier acquired its Bulgarian competitor BGmenu and its Romanian competitor Oliviera in yet another step towards its goal of being the European market leader.

Record results for Henkel


German Henkel experienced a strong 2017, with record numbers for both its profit and turnover. The company managed to surpass the 20 billion euro turnover milestone for the first time.

Merger paid off for Fnac Darty


French entertainment and electronics retailer Fnac Darty (owner of Belgian chain Vanden Borre and Dutch BCC) has experienced a “solid 2017”, with a nearly 40 % turnover increase.

Are Chinese prisoners working for H&M and C&A?


British former journalist Peter Humphrey has accused C&A and H&M of using forced labour. He claims to have seen how Shanghai prisoners were forced to work for Western chains, something the retailers will now investigate.

Colruyt joins PostNL's grocery service


The mailman will deliver groceries every two weeks from now on: PostNL will collaborate with new grocery service Stockon in the Netherlands. A remarkable fact is that its private label brands are Boni, which is Belgian supermarket chain Colruyt’s private label.

Kraft Heinz does not meet expectations


American Kraft Heinz failed to live up to analysts’ fourth quarter expectations, both when it comes to turnover and profit. It did manage a 900 % increase of its profit, but that did not convince any analyst.

Back to top