Chinese e-commerce services provider Baozun reported second-quarter 2026 earnings that missed Wall Street expectations despite revenue growth, while raising its long-term profit target. The company posted adjusted earnings per share of $0.42, falling $1.26 short of the $1.68 consensus estimate, and total net revenue of 2.74 billion yuan, up 7% from a year earlier but slightly below the 2.77 billion yuan forecast.
Non-GAAP operating income rose 25% year-over-year to 74 million yuan, supported by a 10% increase in services revenue within the BEC segment to 1.8 billion yuan. Product sales revenue declined 10% to 541 million yuan as the company shifted focus away from lower-margin categories such as home furnishings and cosmetics. The brand management unit, BBM, delivered a 22% revenue increase to 486 million yuan, driven by strong performance at Gap and progress at Hunter, with gross margins expanding to 56.1% from 52% a year ago.
Operating expenses rose 239 million yuan to 1.2 billion yuan, primarily due to increased marketing investments on Douyin and Xiaohongshu, as well as offline store expansions. Fulfillment costs decreased 9% to 549 million yuan, while technology and content expenses edged down 0.4% to 114 million yuan. Cash and equivalents totaled 2.9 billion yuan as of June 30, 2026, with a current ratio of 1.82.
Management raised its non-GAAP operating profit target for 2028 to 700 million yuan from 550 million yuan, citing continued AI-driven efficiencies and deeper synergies between segments. BBM’s full-year 2026 revenue growth is now expected to range between 20% and 25%, up from the prior 15% to 20% outlook. The company plans to open more than 50 new stores in 2026, with Hunter expanding into high-profile malls and apparel lines.
Baozun’s stock rose 4.96% in premarket trading to $2.96, extending gains from its 52-week low of $2.07. The company’s price-to-book ratio stands at 0.3, with Wall Street price targets ranging from $2.72 to $6.12.
