SHANGHAI - Baozun Inc . (NASDAQ:BZUN), a prominent brand e-commerce solution provider in China, has reported a significant beat on both earnings and revenue for the first quarter of 2024.
The company's adjusted earnings per share (EPS) stood at RMB0.25, surpassing the analyst estimate of RMB0.01 by RMB0.24. Revenue also exceeded expectations, coming in at RMB1.98 billion against the consensus estimate of RMB1.89 billion.
The robust financial performance has been well-received by the market, with Baozun's shares climbing 4.8% in response to the news.
Baozun's Chairman and CEO, Mr. Vincent Qiu, expressed satisfaction with the company's first-quarter achievements, highlighting the progress in growing service revenue and the successful introduction of exclusive distribution models. The company's strategic transformation, according to Mr. Qiu, is driving growth and gaining positive market acceptance.
CFO Ms. Catherine Zhu noted a 5% year-over-year (YoY) revenue increase, attributing the growth to enhanced contributions from Brand Management and improved momentum in E-Commerce. Ms. Zhu also pointed out the first positive operating cash flow for the E-Commerce segment since 2019, reflecting the company's commitment to financial stability and shareholder value.
The first quarter of 2024 saw Baozun's total net revenues rise by 4.9% to RMB1,979.8 million (US$274.2 million), compared with RMB1,887.8 million for the same period in 2023. However, the company experienced a loss from operations of RMB54.8 million (US$7.6 million), which widened from RMB40.6 million in the previous year. The non-GAAP loss from operations also increased to RMB17.5 million (US$2.4 million) from RMB9.7 million YoY.
Despite the operational loss, Baozun's net loss attributable to ordinary shareholders narrowed to RMB66.6 million (US$9.2 million) from RMB83.5 million YoY. The basic and diluted non-GAAP net loss per ADS were both RMB0.25 (US$0.03), compared with RMB0.22 for the same period in 2023.
Baozun's Brand Management segment reported a 65.6% YoY increase in product sales revenue, totaling RMB312.9 million. This growth was primarily due to a full three-month operational period in the current quarter compared to the previous year. Additionally, the E-Commerce segment's service revenue returned to growth, with notable performance in sportswear store operations, digital marketing, and IT services.
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