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Bloomberg
JD.com Inc. reported quarterly profit that fell short of analyst expectations as the Chinese online shopping giant ramps up the construction of physical shops and warehouses amid rising competition from Alibaba Group Holding Ltd.
Adjusted earnings-per-share were 11 cents in the three months ended March, missing the 0.81 yuan average of analyst estimates. While sales for the quarter rose 33 percent to 100.1 billion yuan, topping projections for 99 billion yuan.
JD is locked in an arms race with Alibaba to invest billions of dollars in retail and logistics to win over consumers at home and across Southeast Asia. The competition is unlikely to slow down as both online giants build high-tech supermarkets and other stores that act as shopping hubs and distribution points for web orders. The American depository receipts fell 2 percent in early trading in New York to $37.95.
Net income for the quarter was 1.52 billion yuan, compared to analyst estimates for 243 million yuan, which the company said was largely due to changes in the fair value of investments.