Baozun Inc. (BZUN) reported third‑quarter 2025 revenue of RMB 2,156.2 million (US$302.9 million), a 4.8% year‑over‑year increase that exceeded analyst consensus of RMB 2.14 billion. The company posted a diluted non‑GAAP net loss per ADS of RMB 0.70 (US$0.10), missing the consensus estimate of a loss of RMB 0.54 (US$0.54) by 29.6%. The GAAP net loss attributable to ordinary shareholders was RMB 107.1 million (US$15.0 million), up from RMB 88.1 million in the same quarter last year.
In its two core business segments, Baozun e‑Commerce (BEC) generated RMB 1,385.2 million in services revenue, up 6.3% YoY, while product sales fell 8.9% to RMB 413.4 million. BEC returned to adjusted operating income of RMB 28.1 million, a turnaround from an adjusted operating loss of RMB 29.8 million in Q3 2024. Baozun Brand Management (BBM) saw revenue rise 19.8% YoY to RMB 396.0 million, and its adjusted operating loss narrowed 30% to RMB 38.7 million.
Gross margin expanded dramatically to 34.3%, up 620 basis points from the prior year, driven by higher mix of high‑margin services and improved operational leverage. Operating loss from operations narrowed to RMB 25.6 million (US$3.6 million) from RMB 114.5 million in Q3 2024, and the non‑GAAP loss from operations improved to RMB 10.8 million (US$1.5 million) from RMB 85.2 million a year earlier.
Management highlighted a strategic shift toward sustainable profitability, emphasizing investments in AI and content strategies to support future growth. The company expects profitability improvements in 2026, with a focus on margin expansion and brand development, and projects breakeven for its Gap business in the next quarter. Guidance for the remainder of the fiscal year remains unchanged, but the outlook signals confidence in scaling the AI platform and strengthening the balance sheet.
Investors reacted cautiously: the revenue beat and gross‑margin expansion were offset by the larger‑than‑expected loss per share, reflecting ongoing pressure on profitability. Analysts noted that while revenue growth and margin improvement are positive signs, the persistent EPS miss underscores the need for continued cost discipline and operational efficiency as the company navigates competitive pressures in the Chinese e‑commerce market.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.