Baozun Shares Drop As Q3 Earnings Miss Estimates

Baozun Inc BZUN reported third-quarter FY21 revenue growth of 3.8% year-on-year to $294.7 million (RMB1.9 billion), missing the consensus of $303.5 million.

• Drivers: Gross Merchandise Volume (GMV) rose 48.2% Y/Y to RMB16.1 billion.
• Distribution GMV decreased 9.5% Y/Y to RMB785.7 million. The non-distribution GMV climbed 53.2% Y/Y to RMB15.3 billion.
• Segments: Product sales revenue declined 12.9% Y/Y to $108.6 million. Services revenue rose 16.9% Y/Y to $186.1 million.
• The non-GAAP operating margin was negative (4.4)%. Non-GAAP loss from operations was RMB(84.3) million or $(13.1) million) versus non-GAAP income from operations of RMB111.7 million last year.
• Non-GAAP loss per ADS of $(0.19) missed the consensus of $0.01.
• Baozun held $427 million in cash and equivalents.
• "We witnessed a number of short-term headwinds for the industry during the quarter that resulted in a weaker macro environment and softer consumption sentiment," Chair and CEO Vincent Qiu said.
• Also Read: Baozun Plans $50M Share Repurchase Program
• Price Action: BZUN shares traded lower by 8.96% at $13.51 in the premarket session on the last check Tuesday.