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Mar 31

Baozun Q1 2025 Earnings Report

Baozun reported a modest revenue increase in Q1 2025, but remained in the red with both operational and net losses.

Key Takeaways

In Q1 2025, Baozun grew revenue to $284.5 million, up 4.3% year-over-year. Despite gains in Brand Management, the company posted a $8.7 million net loss and a negative 4.1% operating margin. E-Commerce shifted from profit to loss, while Brand Management narrowed losses.

Total revenue grew to $284.5 million, driven by a 23.4% rise in Brand Management

Net loss was $8.7 million, a slight improvement from Q1 2024

Adjusted operating profit from E-Commerce swung to a $6.3 million loss

Brand Management reduced its adjusted loss by 28.1% year-over-year

Total Revenue
$285M
Previous year: $275M
+3.3%
EPS
-$0.14
Previous year: -$0.03
+366.7%
Operating Margin
-4.1%
Previous year: -2.8%
+46.4%
Non-GAAP Operating Margin
-3.2%
Previous year: -0.9%
+255.6%
Adj. Op. Profit E-Commerce
-$6.3M
Previous year: $1.62M
-488.9%
Cash and Equivalents
$154M
Previous year: $408M
-62.3%
Total Assets
$1.34B
Previous year: $1.36B
-1.5%

Baozun

Baozun

Baozun Revenue by Segment

Forward Guidance

Baozun expressed optimism about its transformation strategy, highlighting gains in Brand Management and a focus on AI and omnichannel capabilities.

Positive Outlook

  • Gap and Hunter performed ahead of expectations
  • Brand Management revenue rose 23.4% year-over-year
  • Omnichannel partner adoption increased to 47.7%
  • Technology and AI investments remain strong
  • Net loss narrowed slightly despite increased costs

Challenges Ahead

  • E-Commerce turned from a profit to a $6.3M loss
  • Non-GAAP operating margin worsened to -3.2%
  • Overall services revenue declined 1.4%
  • Sales and marketing costs increased substantially
  • Brand Management remains unprofitable despite improvements