(Reuters) -Alibaba Group Holding missed analysts’ estimates for quarterly sales on Friday, as lingering economic uncertainty sapped consumer spending in China and weighed on the e-commerce giant’s domestic business.
Chinese consumers have sharply cut back on spending, especially on discretionary items, as the world’s second largest economy struggles to pick up pace amid a property sector crisis and heightened youth job insecurity.
That has knocked retail sales, which remain pressured even as major vendors like Alibaba and JD.com dole out promotions and discounts. JD.com on Thursday also missed estimates for quarterly revenue.
Alibaba is also facing stiff competition from discount-based retailers such as PDD Holdings’ Pinduoduo and ByteDance-owned Douyin, which have wooed thrifty shoppers with rock-bottom prices on everything from headphones to sweaters.
Alibaba reported revenue of 236.50 billion yuan ($32.72 billion) for the second quarter ended Sept. 30, compared with analysts’ average estimate of 240.17 billion yuan, according to data compiled by LSEG.
($1 = 7.2275 Chinese yuan renminbi)
(Reporting by Deborah Sophia in Bengaluru and Casey Hall in Shanghai; Editing by Sriraj Kalluvila)
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