Why Baozun Shares Are Rising Today

  • Baozun Inc BZUN reported a first-quarter FY22 revenue decline of 1.8% year-on-year to $312.99 million, beating the consensus of $283.85 million.
  • Drivers: Gross Merchandise Volume (GMV) rose 28.4% Y/Y to RMB17 billion. Distribution GMV decreased 28.8% Y/Y to RMB764.6 million. The non-distribution GMV climbed 33.4% Y/Y to RMB16.2 billion.
  • Segments: Product sales revenue declined 29.9% Y/Y to $107.4 million. Services revenue rose 24.3% Y/Y to $205.6 million.
  • The non-GAAP operating margin plummeted 350 bps to 0.2%. Non-GAAP income from operations was RMB4.7 million ($0.7 million), compared to RMB75.8 million a year ago.
  • Non-GAAP earnings per ADS of $0.00 missed the consensus of $0.02.
  • Baozun held $532.5 million in cash and equivalents.
  • CFO Arthur Yu commented, "Despite some macro turbulence, I'm pleased that Baozun's business delivered a durable top line, of which service revenues grew by 24.3% year-over-year and achieved a non-GAAP income from operations of RMB4.7 million. It is encouraging that, although revenue from online store operation decreased, our value-added services, including digital marketing and IT solutions, delivered high double-digit growth year-over-year."
  • Price Action: BZUN shares traded higher by 19.9% at $9.46 on the last check Thursday.
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