Vipshop Holdings Limited

VIPS: Is Vipshop Holdings Limited Halal?

Vipshop Holdings Limited

NYSEConsumer CyclicalCN

$14.60

+2.60%

Market Cap: 7.2B

Compliance Status

Not Halal

Screened on Jul 17, 2026 · AAOIFI Standard 21

F

Non-Compliant

0Score

Is Vipshop Holdings Limited (VIPS) halal? Not Halal. Based on AAOIFI screening, Vipshop Holdings Limited passes the business activity screen but fails financial ratio screens with a compliance score of 0/100 (Grade: F).

Business activity

What the company sells is permissible.

Passed

Company debt

Over the limit

How much the company borrows, compared to its total value. AAOIFI allows up to 30%.

89.8% of 30.0% limit

What this means for you

Most scholars advise not holding VIPS

It does not pass AAOIFI Shariah screening.

See halal alternatives from the same sector further down this page

About Vipshop Holdings Limited

Vipshop Holdings Limited (VIPS) functions as a leading online retail enterprise within the People's Republic of China. The company operates a collection of e-commerce platforms, notably Vip.com and Shan Shan Outlets, through which it delivers a wide variety of branded merchandise to consumers. Its extensive product offerings span numerous categories. In the realm of fashion, Vipshop provides a broad assortment of apparel for women (including casual wear, dresses, and intimate apparel), men (featuring casual and smart-casual attire), and children (encompassing clothing, accessories, toys, and nursery essentials). The inventory also includes a comprehensive range of beauty products, such as skincare and cosmetics, alongside diverse footwear and bags suitable for various occasions, from everyday use to travel. Beyond personal items, the company supplies household goods like furnishings, decor, kitchenware, and appliances, as well as consumer electronics, sporting equipment, groceries (including food, beverages, and fresh produce), and pet supplies. Furthermore, Vipshop extends its services into internet finance, providing options like consumer and supplier financing, and microcredit. Customers can access these branded products and financial offerings through its primary digital channels, vip.com and vipshop.com, which are available via both web browsers and dedicated mobile applications. The company's operations are underpinned by a robust suite of supporting services. These include warehousing and logistics management, product procurement, research and development, technology infrastructure support, software development, IT solutions, and comprehensive supply chain management. Founded in 2008, Vipshop Holdings Limited is headquartered in Guangzhou, China.

Sector: Consumer Cyclical · Industry: Specialty Retail

Shariah Compliance Status

AAOIFI Standard 21Updated Jul 17, 2026

Compliance History

Not Halal, unchanged since May 2026.

No status changes recorded since we began tracking.

Tracked since May 2026. Updates automatically on each re-screen.

Fiscal: FY 2025Data source: FMP

Halal Alternatives in Consumer Cyclical

This stock is not Shariah-compliant. Here are halal alternatives from the same sector, ranked by compliance score:

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Frequently Asked Questions

Is Vipshop Holdings Limited (VIPS) halal to invest in?
Vipshop Holdings Limited (VIPS) is rated Not Halal under AAOIFI Standard 21 screening. It fails either the business activity screen (primary involvement in prohibited sectors such as conventional banking, alcohol, or gambling) or one of the quantitative financial ratio thresholds. Muslim investors should avoid or exit this position.
Why did Vipshop Holdings Limited get a F compliance rating?
Vipshop Holdings Limited (VIPS) received a grade of F (Non-Compliant) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 89.8% (limit 30%); interest-bearing deposits of 416.5% (limit 30%); prohibited income of 0.74% (limit 5%). The grade reflects the margin of safety across all three ratios relative to their thresholds.
What could change Vipshop Holdings Limited's Shariah verdict?
Vipshop Holdings Limited's verdict is re-evaluated at each annual re-screen. Three events could change it: (1) the debt-to-market-cap ratio crossing 30%, typically from new debt issuance or a major drop in share price; (2) interest-bearing deposits exceeding 30% of market cap; or (3) prohibited revenue (alcohol, gambling, conventional finance, etc.) exceeding 5% of total revenue. Verdict flips are tracked in the compliance history section above.
How often is Vipshop Holdings Limited re-screened for Shariah compliance?
Vipshop Holdings Limited (VIPS) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Jul 17, 2026.

Screened according to AAOIFI Standard No. 21 · For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.