Baozun (BZUN) Q2 2025 earnings summary

Executive summary

• Total net revenues grew 6.8% year-over-year to RMB 2.6 billion, with E-Commerce revenue up 3.4% and Brand Management revenue up 35.4%.

• Adjusted operating income for E-Commerce surged 56% year-over-year to RMB 41.1 million, while Brand Management adjusted operating loss narrowed by 30%.

• Operating loss narrowed to RMB 9.4 million from RMB 18.8 million year-over-year, with operating margin improving to -0.4% from -0.8%.

• Net loss for the quarter was RMB 20.5 million, narrowing from RMB 21.9 million in the prior year.

• Non-GAAP income from operations was RMB 6.1 million; adjusted for a one-off write-off, it was RMB 59 million, up from RMB 10 million last year.

Financial highlights

• Product sales revenue increased 14.2% year-over-year to RMB 994.1 million, with E-Commerce up 3.3% and Brand Management up 35.5%.

• Services revenue grew 2.5% to RMB 1,558.6 million, led by digital marketing and IT solutions (+12%).

• Blended gross margin for product sales expanded 310 basis points year-over-year to 28.4%.

• Gross profits increased 28.1% year-over-year to RMB 283 million.

• Cash and cash equivalents, restricted cash, and short-term investments totaled RMB 2.7 billion as of June 30, 2025.

Outlook and guidance

• BBM targets 40 new store openings for 2025, with direct stores focused on Tier 1 cities.

• Gap is expected to break even in Q4 2025, with continued strong marketing and product initiatives planned for the second half.

• BEC anticipates a promising second half, especially for Double 11, with deeper engagement from Tmall and JD and improved consumer targeting.

• Operational discipline and seasonal activations in Q3 and Q4 are expected to support full-year targets.

• Forward-looking statements highlight ongoing strategic execution and potential acquisition activity, with risks from macroeconomic and regulatory factors.