SHANGHAI - Baozun Inc . (NASDAQ:BZUN), a leading brand e-commerce solution provider in China, reported fourth-quarter earnings that missed analyst expectations. The company posted an adjusted EPS of RMB0.47, significantly below the analyst estimate of RMB1.19. Revenue for the quarter also fell short, coming in at RMB2.78 billion compared to the consensus estimate of RMB2.87 billion.
The company's revenue growth of 8.9% YoY was mainly attributed to the incremental revenue contribution from its Brand Management business, a new line of business launched in the first quarter of 2023. Despite the revenue increase, Baozun faced challenges in its E-Commerce segment, where product sales revenue decreased by 22.6% due to macro-economic weakness and the company's optimization of its brand portfolio in the distribution model.
Mr. Vincent Qiu, Chairman and CEO of Baozun, expressed gratitude for the team's resilience and adaptability amid market changes and reaffirmed the company's commitment to executing plans sustainably despite macro uncertainties. Mr. Arthur Yu, CFO of Baozun, highlighted the company's record annual operating cash flow and free cash flow, noting a 5% YoY revenue growth to RMB8.8 billion.
The company's operating margin for the quarter was 0.2%, a decrease from 4.9% in the same quarter of the previous year. This was primarily due to lower profitability in the E-Commerce businesses and losses from the newly acquired subsidiary, Gap Shanghai, which have been significantly narrowed.
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