Baozun Registers 20% Topline Decline In Q4 Weighed Down By GMV Weakness; Updates On Newer Business Lines

Baozun Inc (NASDAQ: BZUN) reported a fourth-quarter FY22 revenue decline of 19.5% year-on-year to $370.2 million, missing the consensus of $387.7 million.
Drivers: Gross Merchandise Volume (GMV) declined 1.7% Y/Y to RMB25.6 billion. Distribution GMV decreased 37.2% Y/Y to RMB867.8 million. Non-distribution GMV was flat Y/Y at RMB24.7 billion.
Segments: Product sales revenue declined 37.2% Y/Y to $112 million. Services revenue decreased 8.3% Y/Y to $258.2 million.
The non-GAAP operating margin improved by 500 bps to 7.2%. Non-GAAP income from operations increased by 157.2% Y/Y to $26.5 million.
Non-GAAP EPS per ADS of $0.34 missed the consensus of $0.39.
Baozun held $455.4 million in cash and equivalents.
Mr. Vincent Qiu, Chairman, and CEO, commented, "Looking forward, we see a rapid merging of online and offline commerce, where brands are empowered by technology and digitalization to engage with consumers in a more precise and interactive journey. Reflecting this trend, we are upgrading Baozun into three major business lines -- Baozun e-Commerce ("BEC"), Baozun Brand Management ("BBM"), and Baozun International ("BZI")."
Price Action: BZUN shares traded lower by 5.23% at $5.44 in the premarket on the last check Wednesday.
Photo Via Company