In This Article:
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Total Net Revenues: Increased by 8% year over year to RMB3 billion in Q4 2024.
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E-commerce Revenue: Grew 6% to RMB2.5 billion.
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Brand Management Revenue: Increased by 17% to RMB535 million.
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Services Revenue: Increased by 9% year over year to RMB1.9 billion.
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Online Store Operations Revenue: Increased by 16% year over year.
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Digital Marketing and IT Solutions Revenue: Grew by 15% year over year.
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Gross Margin for Product Sales: 30% at the group level.
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Adjusted Income from Operations: RMB103 million, a 37% improvement from a year ago.
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Non-GAAP Net Income Attributable to Shareholders: RMB46 million, a 59% improvement year over year.
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Cash and Cash Equivalents: RMB2.9 billion as of December 31, 2024.
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Number of Brands in Portfolio: Expanded to over 490 by the end of 2024.
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Same-Store Sales: Increased for the second consecutive quarter.
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New Store Openings: 40 new stores in the second half of 2024, including 16 in Q4.
Release Date: March 20, 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 an 8% year-over-year revenue growth in the fourth quarter of 2024.
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The e-commerce division saw a substantial 16% increase in non-GAAP operating profits.
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Baozun E-commerce resumed annual top-line growth after two years of contraction.
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The company expanded into emerging channels like Douyin, Rena, and WeChat, achieving a 16% year-over-year increase in online store operations revenue.
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Value-added services, including digital marketing and IT solutions, grew by 15% year over year.
Negative Points
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The gross margin for e-commerce product sales decreased to 10.8% from 12.4% a year ago due to a change in category mix.
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Gross margin for Baozun Brand Management (BBM) decreased to 50.4% from 52.9% a year ago due to higher discounts during quarterly Gap promotions.
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The BEC product sales revenue decreased by 4% year over year, mainly due to the weak performance of the appliance category.
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Cash and cash equivalents decreased to RMB2.9 billion from RMB3.1 billion a year ago.
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The company faced challenges in the macroeconomic environment, impacting same-store sales growth.
Q & A Highlights
Q: Have management observed any improvement in consumer consumption sentiment over the past two months, especially with government support measures and promotional activities? What is the expectation for 2025 growth and key drivers? A: Junhua Wu, Co-Founder and Director, noted that consumer sentiment has improved, particularly during recent promotional events like Queen's Day. Categories such as home appliances have seen rapid growth, supported by government subsidies. The company expects continued positive momentum in consumer sentiment. Wu's focus is on optimizing team structures and financial management to enhance profitability and growth.