Baozun shares up 2% on Q2 revenue beat, return to growth
SHANGHAI – Baozun Inc . (NASDAQ:BZUN) shares surged 2.6% after the Chinese e-commerce solutions provider reported better-than-expected second quarter revenue and a return to growth in its core business.
The company posted revenue of RMB2.39 billion ($329 million) for Q2, topping analyst estimates of RMB2.36 billion. This represented a 3.1% increase year-over-year, marking a return to growth after 10 consecutive quarters of contraction in Baozun’s e-commerce segment.
However, Baozun reported a non-GAAP loss per ADS of RMB0.06 ($0.01), missing expectations for earnings of RMB0.18 per ADS.
“I’m pleased that in the second quarter, E-Commerce revenue returned to growth after ten quarters of contraction, highlighting our effective revitalization efforts in both services and product sales,” said Vincent Qiu, Chairman and CEO of Baozun.
The company’s services revenue, which includes online store operations and digital marketing, grew 9.4% YoY to RMB1.52 billion ($209.3 million). This was driven by double-digit growth in sportswear store operations and strong performance in digital marketing services.
Product sales revenue declined 6.4% to RMB870.3 million ($119.8 million), though the company noted this was due to portfolio optimization efforts.
Baozun’s Brand Management segment, which includes operations for Gap in China, narrowed its adjusted operating loss to RMB50 million from RMB60.1 million a year ago.
Looking ahead, the company expects revenue growth momentum to continue for the remainder of 2024. Baozun also repurchased approximately 2 million ADSs for $4.9 million during the quarter under its share buyback program.
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