Alibaba’s Revenue Misses Estimates in a Blow to Revival Effort

Alibaba Group Holding Ltd. posted a disappointing 4% rise in revenue, after aggressive promotions and new shopping features failed to drive spending in a patchy Chinese consumer environment.

The domestic e-commerce leader reported revenue of 243.2 billion yuan ($34 billion) in the June quarter, versus the average projection for about 249.9 billion yuan. Net income fell about 27% to 24.3 billion yuan, reflecting the heavy cost of attracting and retaining shoppers.

The disappointing results will likely unnerve investors hoping for a turnaround. Chief Executive Officer Eddie Wu is spearheading an overhaul at a company that since the big tech crackdown ...