Benchmark analysts downgraded Vipshop Holdings (NYSE:VIPS) from Buy to Hold following the company’s reported disappointing first-quarter results and subdued growth outlook for fiscal year 2024.

The guidance for second-quarter revenue, which is expected to decrease by 0-5% year-over-year, and the flat revenue forecast for fiscal 2024 indicate a loss of market share in Vipshop's standardized products segment, which makes up about 25% of its total GMV. While the core apparel category remains stable, it is likely to face increased competition as key competitors ramp up their investments.

The current stock price, implying a 7.1x FY24 P/E ratio, is seen as fair for a company with no growth. This is in contrast to platform peers who are experiencing mid/high single-digit growth and have an improving outlook, yet trade at higher multiples. Despite the revenue shortfall, the analysts acknowledged the company's stable margin outlook and plans to return 75% of net profit to shareholders. However, the stock lacks fundamental catalysts for further growth.