Baozun Stock Earnings Reports

Baozun reported a solid Q2 2025 with total revenue up ~7% YoY to ~CNY 2.6 billion and marked improvement in underlying profitability. Excluding a one-off CNY 53 million receivable write-off, adjusted non-GAAP operating income rose to CNY 59 million (vs. CNY 10 million a year ago). E‑commerce (BEC) revenue grew low single digits (~3–3.5%), while BEC adjusted operating profit increased 56% YoY to CNY 94 million, reflecting margin and mix improvements. Brand Management (BBM) was the primary growth driver: revenue up 35% YoY to CNY 398 million, gross margin ~52%, BBM non‑GAAP operating loss narrowed to CNY 35 million. Key operational highlights include product-sales blended gross margin expansion to 28.4% (up ~310 bps), group gross profit up 28% YoY, fulfillment cost reductions, and tighter inventory (BBM days of inventory down >20% to 126 days). BBM continued offline expansion (11 openings in Q2, net +8, total 156 stores) and plans ~40 new stores for 2025 using an asset-light approach; Hunter’s first 3 offline stores were profitable in their first quarter. Management expects stronger momentum in H2 (notably Double 11) and reiterated BBM breakeven targeted in Q4. Technology and data initiatives (including Douyin and RedNote partnerships) are being used to drive marketing precision and operational efficiency; AI efforts focus on internal efficiency and content generation rather than near‑term revenue replacement. Cash and short-term investments totaled ~CNY 2.7 billion at June 30, 2025. Risks and one-offs: the CNY 53 million receivable write-off from a 2021 arbitration reduced G&A this quarter and underscores credit/arbitration exposure; platform dynamics and promotion mechanics (618/Double 11/instant retail) remain variables for merchant economics.