Joybuy owner JD.com has reported its first quarterly revenue decline since its stock market debut in 2014, despite signs of improving demand across its core electronics and home appliance business.
The Chinese ecommerce group reported a 2.9% year-on-year decline in second-quarter revenue to around £38 billion, although the result remained ahead of analyst expectations.
The update prompted a sharp reaction from investors, with JD.com’s Hong Kong-listed shares falling more than 10% following the results, after its Nasdaq-listed shares declined 7%.
The comparison was affected by strong sales a year earlier, when Chinese government subsidies encouraged consumers to upgrade electronics and household appliances.
However, Sandy Xu, Chief Executive of JD.com, said sales momentum had begun to improve in June and the company expects growth across its core electronics and home appliance division to strengthen “meaningfully” during the second half of 2026 as comparisons with the previous year become easier.
Despite lower revenue, profitability improved during the quarter. Net income increased by around 15% to £780 million, compared with £680 million a year earlier, while adjusted net profit rose more than 20% to approximately £976 million.
The results come as JD.com increases its focus on the UK and European markets through its Joybuy ecommerce platform.
Joybuy launched in the UK and Europe this year, with JD.com investing in logistics and warehouse infrastructure as it looks to establish the platform as a competitor in the European ecommerce market.
The retailer recently reported “surging sales” during Joybuy’s Summer Black Friday promotion, which featured discounts across electronics and home appliances alongside services including delivery and installation.
JD.com’s European ambitions have also included potential acquisitions of established electrical retailers. The group previously explored a takeover of Currys and held discussions over a possible acquisition of Argos from Sainsbury’s before both approaches ended without a deal.
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