Baozun Inc. reported adjusted earnings per American Depositary Share of RMB0.42 (US$0.06) for the second quarter, exceeding analyst expectations despite revenue that fell short of projections.
Total revenue rose 7.5% year-over-year to RMB2.74 billion (US$404.3 million), below the consensus estimate of RMB2.77 billion. The company swung to a net income of RMB17.0 million (US$2.5 million) from a net loss of RMB34.0 million in the same period last year. Adjusted operating income more than tenfolded to RMB74.3 million (US$10.9 million) from RMB6.1 million a year earlier.
Within its segments, the e-commerce division’s adjusted operating profit climbed to RMB107.1 million (US$15.8 million), up from RMB41.1 million, with revenue increasing 4.6% to RMB1.76 billion. Services revenue grew 10.0% to RMB1.76 billion. The brand management segment narrowed its adjusted operating loss to RMB33.0 million (US$4.9 million) from RMB35.0 million, while revenue jumped 21.9% to RMB485.6 million, driven by higher sales for the Gap brand.
Shares of Baozun gained 1.77% in pre-market trading following the results. The company also raised its 2028 adjusted operating income target to at least RMB700 million, up from the prior target of RMB550 million.
Chairman and CEO Vincent Qiu noted the quarter reflected “solid” performance amid “soft consumer sentiment,” highlighting record second-quarter operating profits in recent years.
