China-based e-commerce and retail company JD.com reported its first quarterly revenue decline since its 2014 initial public offering. The company, which owns Joybuy, saw its second-quarter revenue fall 2.9 percent year-on-year to approximately £38 billion. Although revenue came in above analysts’ expectations, the company’s Hong Kong-listed shares fell by more than 10 percent following the results, while its Nasdaq-listed shares dropped 7 percent.
High Base Effect Weighs on JD.com Sales
The slowdown in revenue was partly driven by the strong boost to sales last year from the Chinese government’s subsidy program supporting the replacement of electronics and home appliances. JD.com CEO Sandy Xu said sales momentum had begun to recover in June. Xu stated that, as the difficult comparison period eases, the company expects growth in its core electronics and home appliances business to strengthen “meaningfully” in the second half of the year.
Despite the decline in sales, profitability increased. Net profit rose by approximately 15 percent, from £680 million to £780 million. Adjusted net profit increased by more than 20 percent to £976 million. While JD.com reduced heavy marketing spending in its food delivery operations, where it competes with Alibaba and Meituan, management said losses in this segment narrowed throughout the quarter.
European E-Commerce Push with Joybuy
JD.com is accelerating its retail expansion outside China through Joybuy. In an effort to compete with global e-commerce players such as Amazon, the company launched Joybuy in the UK and Europe this year, while also investing in its logistics network and warehouse infrastructure across the region. Sales of discounted electronics and home appliances, along with delivery and installation services, were reported to have risen rapidly during Joybuy’s “Summer Black Friday” campaign.
The company’s European plans also include acquisition attempts. JD.com previously made an unsuccessful bid for Currys and held talks with Sainsbury’s over a potential acquisition of Argos before withdrawing from the process. The company also submitted a €2.2 billion offer for Ceconomy, the owner of MediaMarkt and Saturn, which operates more than 1,000 stores across Europe. The transaction became subject to an EU review concerning foreign state subsidies.
Artificial Intelligence Takes a Leading Role in Retail Infrastructure
JD.com is also supporting its e-commerce and retail operations through investments in artificial intelligence and technology. The company has integrated artificial intelligence into operations, product management and logistics processes within its supply chain infrastructure, and announced that its 618 shopping campaign in 2026 was carried out with full AI integration. JD.com’s Joybuy expansion in Europe is also progressing alongside investments in digital commerce, logistics and technology.