In This Article:
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Total Net Revenues: Increased by 4.3% year-over-year to RMB2.1 billion.
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E-Commerce Revenue: Grew by 1.4% to RMB1.7 billion.
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Brand Management Revenue: Rose by 23% to RMB387 million.
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Gross Margin for Product Sales: Blended gross margin at the group level was 32.4%.
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Gross Profit: Increased by 18.9% year-over-year to RMB262 million.
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E-Commerce Product Sales Gross Margin: Expanded to 15%, a 130 basis point improvement.
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BBM Gross Margin: 51.6%, compared to 53.1% a year ago.
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Adjusted Loss from Operations: Totaled RMB67 million.
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Adjusted Operating Loss - E-Commerce Segment: RMB46 million, a decline of RMB58 million from the previous year.
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Adjusted Operating Loss - BBM: RMB21 million, an improvement of 28% from the previous year.
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Same-Store Sales Growth: Improved to 5% for the quarter.
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New Store Openings: Plan to open more than 40 new stores, with about 10 set to open in the second quarter.
Release Date: May 21, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Baozun Inc (NASDAQ:BZUN) achieved a 4% year-over-year revenue growth, with the Brand Management segment showing a strong 23% increase.
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The company improved its gross profit by 18.9% year-over-year, reaching RMB262 million for the quarter.
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Baozun Inc (NASDAQ:BZUN) is leveraging technology and AI applications to enhance operational efficiency and drive margin expansion.
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The company reported strong performance in new product categories such as Home & Furniture, Alcohol, and Health & Nutrition.
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Baozun Inc (NASDAQ:BZUN) achieved a 36% reduction in Scope 1 and 2 carbon emissions since 2021, demonstrating its commitment to sustainability.
Negative Points
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The E-Commerce segment experienced a flat revenue growth of only 1.4%, indicating challenges in this area.
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Baozun Inc (NASDAQ:BZUN) reported an adjusted operating loss of RMB67 million for the quarter, with significant losses in the E-Commerce segment.
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The gross margin for the Brand Management segment decreased to 51.6% from 53.1% a year ago due to product offering adjustments.
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The company incurred approximately RMB80 million in restructuring costs related to human resource reform.
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Warehouse and logistics revenue declined due to reduced volume from key clients in the Sportswear segment.
Q & A Highlights
Q: Can you provide an update on your expectations for the 618 shopping festival and any preliminary results from the promotions? Also, how are different E-Commerce platforms performing? A: Junhua Wu, Co-Founder, Director: The 618 campaign is the longest yet, running from May 13 to June 20. Initial results are promising, with strong presale activity and improved conversion rates. Home Appliance and Fashion Luxury categories are leading. In terms of platforms, JD and Douyin are showing strong growth, while RedNote is gaining traction with new marketing initiatives.