China-based e-commerce solutions provider Baozun (Nasdaq: BZUN) reported stronger than expected earnings and revenues for the first quarter. Though the company’s stock gained soon after the report, it slipped into the negative territory later.
Net income, adjusted for one-off items, climbed to RMB0.89 per ADS ($0.13 per ADS) from RMB0.54 per ADS in the first quarter of 2018. Analysts were looking for a slightly lower profit.
Net income attributable to shareholders, on a reported basis, was RMB34 million ($5.12 million) or RMB0.57 per ADS ($0.08 per ADS) in the March quarter, compared to RMB14.93 million or RMB0.25 per ADS a year earlier.
Driving the bottom-line growth, revenues surged 40% annually to RMB1.29 billion ($191.7 million), with strong contributions from the services segment. Revenues also came above the estimates.
Driving the bottom-line growth, revenues surged 40% annually, with strong contributions from the services segment
Revenues from product sales jumped 34% to RMB460 million, helped by the company’s aggressive marketing and promotional campaigns, acquisition of new brand partners and the increased popularity of brand partners’ products.
The top-line also benefitted from a 58% growth in gross merchandise volume to RMB7.8 billion. Distribution gross merchandise volume was up 32%, while non-distribution gross merchandise volume grew 62%.
At the end of the quarter, the company had a total of 200 brand partners, up 28% year-over-year.
“We continue to grow our business in a sustainable and balanced manner, which we believe will better position us to drive growth over the long-term and offer both international and domestic brand partners a unique value proposition,” said CEO Vincent Qiu.
Related: Baozun Inc. Q4 2018 Earnings Conference Call Transcript
Encouraged by the positive results, the company sees a 34%-38% top-line growth in the second quarter and forecasts revenues in the range of RMB1.55 billion to RMB1.60 billion. Service revenues are estimated to grow about 40% year-over-year.
Baozun shares closed Tuesday’s trading session sharply higher. The stock has gained 8% since the beginning of the year.
Most Popular
CVX Earnings: Chevron reports lower revenue and profit for Q3 2024
Energy exploration company Chevron Corporation (NYSE: CVX) on Friday announced third-quarter 2024 financial results, reporting a decline in net profit and revenues. Net income attributable to Chevron Corporation dropped to
Key highlights from Exxon Mobil Corporation’s (XOM) Q3 2024 earnings results
Exxon Mobil Corporation (NYSE: XOM) reported its third quarter 2024 earnings results today. Total revenues and other income remained relatively flat at $90 billion compared to the same period a
AAPL Earnings: Apple Q4 2024 sales rise 6% YoY, beat estimates
Apple Inc. (NASDAQ: AAPL) reported an increase in revenues for the fourth quarter of 2024. The top line came in above estimates. The gadget giant generated revenues of $94.9 billion
Comments