JD.com reports first revenue decline in ten years

Chinese retail giant JD.com, which is preparing to acquire MediaMarkt in Europe, is facing its first quarterly decline in revenue in more than a decade. Nevertheless, the company expects sales of home appliances to pick up again in the second half of the year.

A rebound expected

JD.com’s revenue fell by 2.9% to 346.4 billion yuan (approximately 51.37 billion euros) in the quarter ending in June. That is still better than expected: analysts had forecast revenue of 344.6 billion yuan. The better-than-expected result is due to an extended sales period during the annual 618 shopping festival, one of the largest e-commerce events in China. Net profit rose from 6.2 billion yuan to 7.1 billion yuan (approximately 1 billion euros).