Beaten Down Chinese E-Commerce Firm Baozun Clocks Mixed Q2 Earnings

Chinese e-commerce solutions provider Baozun Inc (NASDAQ: BZUN) reported a second-quarter FY23 revenue growth of 9.3% year-on-year to RMB2.32 billion ($319.97 million), missing the consensus of $345.95 million.

Non-GAAP EPS loss per ADS was $(0.01) vs. the consensus loss of $(0.03).

Gross Merchandise Volume (GMV) generated from non-TMALL marketplaces and channels accounted for 34.1% of total GMV during the quarter, compared with 24.4% for 2022.

By the end of Q2, approximately 46.1% of its brand partners engaged with it for store operations of at least two channels, compared with 40.2% a year ago.

Segments: Product sales revenue improved 34.1% Y/Y to $128.3 million. Services revenue decreased 2.7% Y/Y to $191.7 million.

The non-GAAP operating margin was 0.03% vs. 2.2% a year ago. Non-GAAP income from operations was RMB0.7 million ($0.1 million) vs. RMB47.3 million a year ago.

Baozun's stock has lost 36% year-to-date. The company held $443 million in cash and equivalents at the end of the second quarter.

Arthur Yu, Chief Financial Officer of Baozun and President of BEC, commented, "In the second quarter of 2023, BEC once again achieved better year-over-year profits and cash flows, benefiting from our consistent efforts in enhancing value and reducing costs."

Price Action: BZUN shares traded higher by 2.71% at $3.79 premarket on the last check Monday.