Why Is Baozun Stock Trading Lower Today?

Zinger Key Points
  • Baozun beats Q4 revenue with $391.6M aided by incremental revenue contribution from new line of business BBM.
  • Baozun held $432.8M in cash as of December 31, 2023.

Chinese e-commerce solutions provider Baozun Inc (NASDAQBZUN) reported a fourth-quarter fiscal 2023 revenue growth of 8.9% year-on-year to RMB2.78 billion ($391.6 million), beating the consensus of $382.2 million.

Adjusted EPS per ADS was $0.07 vs. the consensus of $0.16. The stock price slid after the results.

The increase in total net revenues was mainly due to the incremental revenue contribution from Baozun Brand Management (BBM), a new line of business it launched in the first quarter of 2023.

By the end of the quarter, in the BEC segment, approximately 44.7% of its brand partners engaged with it for store operations of at least two channels, compared with 41.8% a year ago.

Segments: Product sales revenue improved 36.3% Y/Y to $148.1 million. Services revenue decreased 3.0% Y/Y to $243.3 million.

The adjusted operating margin was 2.7% vs. 7.2% a year ago. The company held $432.8 million in cash and equivalents as of December 31, 2023.

Baozun stock lost 50% in value in the one-year period. Investors can gain exposure to the stock via Invesco Golden Dragon China ETF PGJ.

Price Action: BZUN shares traded lower by 8.33% at $2.64 premarket on the last check Thursday.

Market News and Data brought to you by Benzinga APIs
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsEquitiesNewsMoversBriefsEurasiawhy it's moving
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!