1. Baozun reported 4.3% revenue growth in Q1 2025 year-over-year. 2. Brand Management revenue increased by 23% driven by Gap and Hunter brands. 3. Operational losses narrowed by 28% in Brand Management, indicating improvement. 4. Total net loss decreased to RMB63.1 million, showing financial stabilization. 5. Company emphasizes ongoing strategic transformation and technology investments.
Despite operating losses, increased revenue and brand management growth project positive trends. Previous BZUN performance showed recovery post-earnings announcements even after losses.
The earnings report contains significant revenue growth and operational insights relevant to investors. The underlying business transformation and strategic plans further add weight to the importance.
Ongoing transformation efforts and diversification suggest a longer-term growth trajectory, drawing from past instances where sustained innovation led to improved market positioning.
Baozun Inc. (Nasdaq: BZUN and HKEX: 9991) ("Baozun", the "Company" or the "Group"), a leading brand e-commerce solution provider and digital commerce enabler in China, today announced its unaudited financial results for the first quarter of 2025.
Mr. Vincent Qiu, Chairman and Chief Executive Officer of Baozun, commented, "Baozun continues to execute our strategic transformation with consistent quarterly progress. Our revenue streams have become more diversified, and our operational excellence continues to strengthen across the businesses. I am encouraged by the strides Baozun e-Commerce (BEC) has made in quality development and value generation for our brand partners. Within Baozun Brand Management (BBM), both Gap and Hunter are performing ahead of expectations, boosting our confidence in our strategic direction and future growth."
"Overall, we closed the first quarter well with a consistent positioning to accelerate our transformation through 2025. Notably, 2025 marks Baozun's 18th anniversary—a symbolic and strategic milestone. In Chinese tradition, eighteen signifies the time of renewed vigor, maturity and ambition. We view this milestone as a reflection of our transformation into an innovation-led platform focused on long-term value creation." Mr. Qiu concluded.
Ms. Catherine Zhu, Chief Financial Officer of Baozun Inc., commented, "Baozun delivered a 4% topline growth in the first quarter of 2025, with E-Commerce revenue stabilizing and Brand Management revenue accelerating by 23% year-over-year. Notably, BBM's operating loss narrowed by 28% year-over-year, and the business remains on track to deliver ongoing profitability improvement throughout the year. With disciplined management, and continued investment in technology and AI-powered commerce, we are well-positioned to sustain long-term profitability and growth."
Reconciliations of GAAP measures to non-GAAP measures presented above are included at the end of this results announcement.
Adjusted operating profits (losses) are included in the Segments data of Segment Information.
[1] This announcement contains translations of certain Renminbi (RMB) amounts into U.S. dollars (US$) at a specified rate solely for the convenience of the reader. Unless otherwise noted, the translation of RMB into US$ has been made at RMB7.2567 to US$1.00, the noon buying rate in effect on March 31, 2025 as set forth in the H.10 Statistical Release of the Federal Reserve Board.
[2] Non-GAAP income (loss) from operations is a non-GAAP financial measure, which is defined as income (loss) from operations excluding the impact of share-based compensation expenses, amortization of intangible assets resulting from business acquisition, acquisition-related expenses, impairment of goodwill and cancellation fees of repurchased ADSs.
[3] Non-GAAP net income (loss) attributable to ordinary financial measure, which is defined as net income (loss) attributable to ordinary shareholders of Baozun excluding the impact of share-based compensation expenses, amortization of intangible assets resulting from business acquisition, acquisition-related expenses, impairment of goodwill and investments, other-than-temporary impairment of equity method investments, cancellation fees of repurchased ADSs, fair value loss on financial instruments, loss (gain) on disposal/acquisition of subsidiaries, and unrealized investment loss (gain).
[4] Each ADS represents three Class A ordinary shares.
[5] Diluted non-GAAP net income (loss) attributable to ordinary shareholders of Baozun Inc. per ADS are non-GAAP financial measures, which are respectively defined as non-GAAP net income (loss) attributable to ordinary shareholders of Baozun Inc. divided by weighted average number of shares used in calculating diluted net income (loss) per ordinary share multiplied by three, respectively.
BEC encompasses our China e-commerce businesses, including brand store operations, customer services, and value-added services in warehouse and logistics management, IT and digital marketing. During the first quarter of 2025, total revenue from BEC increased by 1.4% year-over-year, primarily driven by stronger sales in its distribution business model. BEC's product sales grew by 7%, driven by growth categories in Home & Furniture, Alcohol and Health & Nutrition.
Omni-channel expansion remains a key theme for our brand partners. Notably, during this quarter, we achieved double-digit revenue growth on JD and Douyin, and triple-digit growth on RedNote for the quarter. By the end of the first quarter of 2025, approximately 47.7% of our brand partners engaged with us for store operations of at least two channels, compared to 42.8% at the end of same quarter of last year.
The company launched the BBM business line in 2023, to leverage its leading portfolio of technologies in service of brands, fostering deeper and longer relationships to drive sustainable business growth in China.
BBM provides holistic brand management, encompassing strategic and tactical positioning, branding and marketing, retail and e-commerce operations, supply chain and logistics, and technology enablement. We aim to leverage our portfolio of technologies to build longer and deeper relationships with brands. Currently, our Brand Management business line includes the Gap and Hunter brands. During the first quarter of 2025, total revenue from BBM increased by 23.4% year-over-year, driven by strong performance of both Gap and Hunter brands. At the end of the first quarter of 2025, Gap and Hunter brands have 152 offline stores under our management.
Total net revenues were RMB2,064.4 million (US$284.5 million), an increase of 4.3% from RMB1,979.8 million in the same quarter of last year. The increase in total net revenues was driven by revenue growth in the Company's BBM business line.
Total product sales revenue was RMB809.3 million (US$111.5 million), an increase of 14.4% compared with RMB707.5 million in the same quarter of last year, of which,
For the three months ended March 31,
| Category | 2024 RMB | 2025 RMB | 2025 US$ | % of Net Revenues | YoY Change |
|---|---|---|---|---|---|
| Appliances | 190.7 | 157.8 | 21.7 | 8% | -17% |
| Beauty and cosmetics | 69.0 | 70.5 | 9.7 | 3% | 2% |
| Home and furnishing | 20.1 | 48.1 | 6.6 | 2% | 139% |
| Others | 114.8 | 146.8 | 20.3 | 7% | 28% |
Total net revenues from product sales of E-Commerce
The following table sets forth a breakdown of services revenue by business models for the periods indicated:
| Service Model | 2024 RMB | 2025 RMB | 2025 US$ | % of Net Revenues | YoY Change |
|---|---|---|---|---|---|
| Online store operations | 366.6 | 410.9 | 56.7 | 20% | 12% |
| Warehousing and fulfillment | 461.9 | 442.4 | 61.0 | 22% | -4% |
| Digital marketing and IT solutions | 462.2 | 432.8 | 59.6 | 21% | -6% |
| Inter-segment eliminations | (18.5) | (31.0) | (4.3) | -2% | 68% |
(a) Description of segments
The Group has two operating segments, which are (i) E-Commerce and (ii) Brand Management;
(ii) Brand Management engages in holistic brand management, encompassing strategic and tactical positioning, branding and marketing, retail and e-commerce operations, supply chain and logistics and technology enablement to leverage our portfolio of technologies to build into longer and deeper relationships with brands. Currently, the Company runs brand management operations for the Gap and Hunter brands in Greater China.
The total operating expenses and net loss attributable to ordinary shareholders of Baozun for the quarter are provided, with a breakdown in financial performance comparing year-over-year metrics.
For more detailed financial analysis, please refer to Baozun's Investor Relations section.
The Company will host a conference call to discuss the earnings at 7:30 a.m. Eastern Time on Wednesday, May 21, 2025 (7:30 p.m. Beijing time on the same day).
This announcement contains forward-looking statements and involves inherent risks and uncertainties.
Founded in 2007, Baozun Inc. is a leader in brand e-commerce service, brand management, and digital commerce service. For more information, please visit http://ir.baozun.com.
For investor and media inquiries, please contact:
Baozun Inc.
Ms. Wendy Sun
Email: xxx@baoze.com
(In thousands)
As of March 31, 2025
| Assets | 2024 RMB | 2025 RMB | 2025 US$ |
|---|---|---|---|
| Current assets | 7,214,171 | 6,728,167 | 927,165 |