BRIEF: Baozun loss narrows as Gap China growth lifts revenue

Brand manager and e-commerce services provider Baozun Inc. (BZUN.US; 9991.HK) announced on Wednesday that its revenue rose 15.3% year-on-year to 2.38 billion yuan ($350 million) in the first quarter, as its net loss narrowed to 7.5 million yuan from 63.08 million yuan a year earlier. On a non-GAAP basis, the company posted a first-quarter net profit of 1.4 million yuan, reversing a 57.17 million yuan loss a year ago.

The company’s operating profit for the quarter came in at 250,000 yuan, compared with an operating loss of 84 million yuan a year earlier. Its non-GAAP operating profit was 8.11 million yuan, reversing a loss of 66.91 million yuan in the prior-year period.

The company said its revenue growth was mainly driven by its core e-commerce and brand management businesses. E-commerce revenue increased 10.4% year-on-year, driven by continued growth in product sales and service fee-based models. Revenue from its brand management business jumped 38.8% to 538 million yuan, mainly driven by sales growth for its GAP brand stores in China, which totaled 176 at the end of March.

The company’s stock opened higher on Thursday in Hong Kong, closing at HK$6.74 by the midday break, up 0.15%.

By Lee Shih Ta

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