Baozun posts 2% rise in Q2 revenue, return to growth via Investing.com

SHANGHAI – Baozun Inc . (NASDAQ: ) shares rose 2.6% after the Chinese e-commerce solutions provider reported better-than-expected second-quarter earnings and a return to growth in its core business.

The company posted revenue of RMB 2.39 billion ($329 million) for Q2, beating analysts’ estimates of RMB 2.36 billion. This represented a 3.1% increase year-on-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 RMB 0.06 ($0.01), missing earnings expectations of RMB 0.18 per ADS.

“I am pleased that in the second quarter, e-commerce revenue returned to growth after ten quarters of contraction, highlighting our effective revitalization efforts in both service and product sales,” said Vincent Qiu, chairman and CEO of Baozun.

The company’s service revenue, which includes online store operations and digital marketing, rose 9.4 percent year-on-year to RMB 1.52 billion ($209.3 million). This was driven by double-digit growth in sportswear store operations and strong performance in digital marketing services.

Revenue from product sales fell 6.4% to RMB 870.3 million (US$119.8 million), although the company noted that 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 RMB 50 million from RMB 60.1 million a year ago.

Looking ahead, the company expects the revenue growth momentum to continue for the remainder of 2024. Baozun also repurchased approximately 2 million ADSs for $4.9 million during the quarter as part of its share repurchase program actions.

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