BZ.US 9991.HK
Headquartered in Shanghai, Baozun listed in New York in 2015 and made a secondary listing in Hong Kong in September 2020.

The Latest: Baozun Inc. (BZ.US; 9991.HK) on Tuesday reported its revenue rose 4.9% to 1.98 billion yuan ($273 million) in this year’s first quarter, while its net loss narrowed 20.2% to 66.6 million yuan.

Looking Up: The company’s brand management business, which manages it China-based Gap brand retailing operation and its Hunter brand, posted 65.6% growth in product sales to 313 million yuan.

Take Note: Product sales revenue for its older e-commerce business fell by 17.3% to 395 million yuan, as revenue from its fast-moving consumer goods and small household appliances fell by 51% and 15%, respectively, even as revenue from its beauty and cosmetics products categories rose.

Digging Deeper: Headquartered in Shanghai, Baozun listed in New York in 2015 and made a secondary listing in Hong Kong in September 2020. The company has long partnered with e-commerce giant Alibaba (BABA.US; 9988.HK) to provide products and services for e-commerce store operators. In a bid to lower its dependence on Alibaba and move into new areas, it acquired the Greater China operations of apparel retailer Gap (GPS.US) in 2023, and established a joint venture to sell Authentic Brands’ Hunter’s Wellington boots in Greater China. Both of those newer brand initiatives began to achieve positive results last year.

Market Reaction: Baozun’s Hong Kong shares fell on Wednesday, closing down 0.7% to HK$7.20 by the midday break. The stock now trades near the lower end of its 52-week range.

Translation by A. Au

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