Baozun's (BZUN) Earnings And Revenues Increase Y/Y In Q4
Zacks Investment Research | Mar 07, 2019 09:47PM ET
Baozun Inc.’s (NASDAQ:BZUN) fourth-quarter 2018 non-GAAP net income per ADS was RMB 3.46 (50 cents), up 14% from the year-ago quarter.
The company’s revenues surged 41% year over year to RMB 2,202 million ($320.3 million).
Its initiatives to strengthen its omni-channel 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 56.7% from the year-earlier quarter to RMB 1,226.6 million ($178.4 million). A strong uptick in sales from the existing brand partners coupled with new brand partners under Baozun’s consignment model and the service fee model drove results.
Product sales revenues were RMB 975.4 million ($141.9 million), up 24.6% year over year, driven by the growing popularity of brand partners’ products and the company’s effective marketing and promotional campaigns.
During the quarter under review, total Gross Merchandise Volume (GMV) expanded 42.8% to RMB 12,038 million. Notably, the company’s non-distribution business saw 45% growth in GMV during the quarter under consideration.
A strong flourish in the e-commerce sector, backed by an emerging base of affluent middle-class Chinese consumers, is boosting growth.
Baozun’s number of brand partners grew to 185 at of the end of fourth quarter from 152 during the same period last year. The newly added brands are mainly in apparel, cosmetics and FMCG categories.
Operating Details
On a non-GAAP basis, the company’s operating income was RMB 247.1 million ($35.9 million), reflecting an increase of 30.1% year over year.
However, non-GAAP operating margin contracted 80 basis points to 11.2% in the quarter under discussion. Increase in investments in lower-margin digital marketing services is an overhang on margins.
Baozun Inc. Price, Consensus and EPS Surprise
Original post
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.