Baozun (BZUN) To Report Q1 Earnings: What's In The Cards?
Zacks Investment Research | May 23, 2019 08:17AM ET
Baozun Inc. (NASDAQ:BZUN) is scheduled to report first-quarter 2019 results on May 29.
In the last reported quarter, the company’s non-GAAP net income per ADS was RMB 3.46 (50 cents), up 14% from the year-ago quarter.
The company’s revenues grossed to RMB 2,202 million ($320.3 million), up 41% from the year-earlier period.
For first-quarter 2019, the company expects revenues between RMB 1.25 billion and RMB 1.3 billion.
Let's see, how things are shaping up for the upcoming announcement.
Factors at Play
Baozun’s initiatives to strengthen its omnichannel matrix of solutions with the addition of innovative proprietary tools and its digital marketing services are likely to help the company boost its upcoming quarterly results.
A solid uptick in sales from the existing brand partners coupled with new brand partners under Baozun’s consignment model and the service fee model is a positive. This is likely to aid the company’s Services revenues, which per management will witness a 45% rise on a year-over-year basis.
Moreover, the growing popularity of brand partners’ products and the company’s effective marketing and promotional campaigns are likely to enhance its Product sales revenues.
A strong flourish in the e-commerce sector, backed by an emerging base of affluent middle-class Chinese consumers, is likely to improve growth.
Expansion of brand partners, mainly in the apparel, cosmetics and FMGC categories, is a key driver. Notably, Baozun’s number of brand partners grew to 185 at the end of the fourth quarter from 152 during the same period last year.
However, higher investments in lower-margin digital marketing services are an overhang on the company’s margins. Slowdown in China's economic growth coupled with US-China trade war are persistent woes.
Baozun Inc. Price and EPS Surprise
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