Baozun (BZUN) Q2 2025 earnings summary

Executive summary

• Total net revenues grew 6.8% year-over-year to RMB 2.6 billion, with both E-Commerce and Brand Management segments contributing to growth.

• Adjusted operating income for E-Commerce rose 56% year-over-year to RMB 94 million, while Brand Management revenue surged 35% year-over-year, mainly driven by Gap and Hunter brands.

• Net loss for the quarter was RMB 20.5 million, narrowing from RMB 21.9 million in the prior year, while non-GAAP income from operations was RMB 6.1 million, adjusted to RMB 59 million after excluding a one-off write-off.

• Brand Management narrowed its adjusted operating loss by 30% year-over-year, with Gap showing strong merchandising and channel expansion.

• Non-recurring impairment of accounts receivable and arbitration proceedings impacted results.

Financial highlights

• E-Commerce revenue grew 3.4% to RMB 2.2 billion; Brand Management revenue rose 35.4% to RMB 398 million.

• Blended gross margin for product sales expanded 310 basis points year-over-year to 28.4%; E-Commerce product sales gross margin was 12.8% (up 110 bps), and Brand Management gross margin was 52%.

• 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, with another report stating RMB 1.19 billion.

• 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.

Outlook and guidance

• BBM targets 40 new store openings for 2025, focusing on Tier 1 cities, and Gap is expected to break even in Q4 2025.

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

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

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