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Why Is Baozun Stock Falling After Q2 Earnings?

Benzinga2021-08-19

  • Brand e-commerce service partner Baozun Inc (NASDAQ:BZUN) reported second-quarter FY21 revenue growth of 7.1% year-on-year to $356.9 million (RMB2.3 billion), missing the analyst consensus of $373.4 million.
  • Drivers: Gross Merchandise Volume (GMV) rose 23.3% Y/Y to RMB15.7 billion.
  • Distribution GMV increased 5.4% Y/Y to RMB1.1 billion.
  • The non-distribution GMV climbed 24.9% Y/Y to RMB14.6 billion.
  • Segments: Product sales revenue expanded 4.8% Y/Y to $150.6 million, aided by acquiring new brand partners and the increased popularity of brand partners' products.
  • Services revenue rose 8.8% Y/Y to $206.3 million, driven by the company's consignment and service fee models and offset by the decline of sales in the sportswear sector impacted by the Better Cotton Initiative.
  • Margin: The non-GAAP operating margin contracted 170 bps to 7%.
  • It reported Non-GAAP earnings per ADS of $0.31.
  • Baozun held $702.3 million in cash and equivalents.
  • Baozun also remains vulnerable to China's latest internet industry rules.
  • Price Action: BZUN shares traded lower by 5.35% at $20.01 in the premarket session on the last check Thursday.

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  • Mikaelocw
    ·2021-09-15
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