E-commerce giant JD.com disappointed with its quarterly earnings release on Thursday, where it dipped back into loss-making territory from April to June.
Despite taking Rmb 122.3 billion ($17.73 billion) in sales during the period – a 31% jump from the same time last year – the market consensus according to a Reuters poll expected sales of Rmb 122.7 billion.
JD posted a Q2 net loss of $334.4 million, twice the forecast of the Reuters poll, reflecting both slower sales and new investment plans, including a warehouse management service that is being rolled out.
“(These) initiatives are yet to provide meaningful financial results but we believe we’ve made good traction since doubling down on technology last year,” CFO Sidney Huang told investors.
The company’s stocks fell around 5% on the Nasdaq following the announcement.