Baozun Registers 5.2% Revenue Decline In Q4 Due To Weaker Consumption Sentiment; Margin Plunges

Baozun Inc BZUN reported a fourth-quarter FY21 revenue decline of 5.2% year-on-year to $497.9 million, missing the consensus of $503.7 million.
Drivers: Gross Merchandise Volume (GMV) rose 13.7% Y/Y to RMB26 billion. Distribution GMV decreased 16% Y/Y to RMB1.4 billion. The non-distribution GMV climbed 16% Y/Y to RMB24.6 billion.
Segments: Product sales revenue declined 16.6% Y/Y to $193 million. Services revenue rose 3.8% Y/Y to $304.9 million.
The non-GAAP operating margin plummeted 780 bps to 2.2%. Non-GAAP income from operations of RMB71.0 million ($11.1 million), compared to RMB333.1 million in Q4 FY20.
Non-GAAP earnings per ADS of $0.17 beat the consensus of $0.14.
Baozun held $737.5 million in cash and equivalents.
Vincent Qiu, Chair and CEO, commented, "Although a weaker consumption sentiment permeates the fourth quarter, we continue to see acceleration in the deployment of omnichannel strategy."
Price Action: BZUN shares traded lower by 3.55% at $8.70 in the premarket session on the last check Thursday.

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