Baozun Inc. posted adjusted earnings per American Depositary Share (ADS) of RMB0.42 (US$0.06) for the second quarter, topping consensus estimates, while revenue of RMB2.74 billion (US$404.3 million) fell short of analyst projections.
The Shanghai-based company reported a net income of RMB17.0 million (US$2.5 million) in the quarter, a turnaround from a net loss of RMB34.0 million in the same period last year. Adjusted operating income rose to RMB74.3 million (US$10.9 million) from RMB6.1 million year-over-year.
Revenue grew 7.5% year-over-year to RMB2.74 billion, below the consensus estimate of RMB2.77 billion. The company’s e-commerce division generated adjusted operating profit of RMB107.1 million (US$15.8 million), up from RMB41.1 million a year earlier, with services revenue increasing 10.0% to RMB1.76 billion. Brand management revenue surged 21.9% to RMB485.6 million, driven by higher sales for the Gap brand, though the segment posted an adjusted operating loss of RMB33.0 million, narrowing from RMB35.0 million.
Baozun raised its 2028 annual adjusted operating income target to at least RMB700 million, up from the prior target of RMB550 million. The company’s shares rose 1.77% in pre-market trading following the results.
Chairman and CEO Vincent Qiu noted that the quarter reflected "solid" performance amid "soft consumer sentiment," with total revenue growing 7% year-over-year and earnings quality improving alongside record operating profits in recent quarters.
