Baozun's (BZUN) Earnings And Revenues Improve Y/Y In Q1
Zacks Investment Research | Jun 03, 2019 11:40PM ET
Baozun Inc.’s (NASDAQ:BZUN) first-quarter 2019 non-GAAP net income per ADS was RMB 0.89 (13 cents), up 64.8% from the year-ago period.
The company’s revenues surged 41% year over year to RMB 1,287 million ($191.7 million).
A strong flourish in the e-commerce sector, backed by an emerging base of affluent middle-class Chinese consumers, is boosting growth.
The company’s initiatives to strengthen its omnichannel matrix of solutions with the addition of innovative proprietary tools and its digital marketing services led to solid growth in the reported quarter.
Quarterly Details
Services revenues soared 45% from the year-earlier quarter to RMB 669.2 million ($99.7 million). Strong growth in the company’s consignment model and the service fee model and its digital marketing services drove results.
Product sales revenues were RMB 617.6 million ($92 million), up 34.3% year over year, driven by the growing popularity of brand partners’ products, acquisition of new brand partners and the company’s effective marketing and promotional campaigns.
During the quarter under review, total Gross Merchandise Volume (GMV) expanded 58.4% to RMB 7,831 million. Notably, the company’s non-distribution business saw 61.6% growth in GMV during the quarter under consideration.
Baozun’s number of brand partners grew to 200 at the end of the first quarter from 156 during the same period last year. The newly added brands are mainly in FMCG, apparel, food and health plus cosmetics categories.
Operating Details
On a non-GAAP basis, the company’s operating income was RMB 64.7 million ($6.8 million), reflecting an increase of 41.6% year over year.
Non-GAAP operating margin was flat year over year at 5% in the quarter under discussion.
Baozun Inc. Price, Consensus and EPS Surprise
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