SHANGHAI - Chinese e-commerce solutions provider Baozun Inc . (NASDAQ:BZUN) saw its shares jump 5% after reporting third quarter revenue that topped analyst estimates, even as losses widened more than expected.
Baozun posted revenue of RMB2.06 billion ($293.1 million) for the quarter ended September 30, exceeding the consensus forecast of RMB1.87 billion. This represented a 12.8% increase compared to the same period last year.
However, the company reported a wider-than-expected loss for the quarter. Non-GAAP diluted loss per ADS came in at RMB1.12 ($0.16), compared to analyst expectations for earnings of RMB0.46 per ADS.
"I'm pleased that Baozun is advancing our strategic vision, with robust topline growth driven by transformative initiatives," said Vincent Qiu, Chairman and CEO of Baozun. He noted that both the company's E-Commerce and Brand Management segments delivered solid performances.
E-Commerce revenue rose 13.9% YoY to RMB1.76 billion, while Brand Management revenue increased 10.3% to RMB330.6 million. Product sales resumed growth after 12 consecutive quarters of contraction.
The company highlighted triple-digit annual revenue growth on Douyin, China's version of TikTok, reflecting its push into creative content commerce.
Despite the wider loss, Baozun expressed confidence in its long-term growth prospects. The company repurchased $9.9 million worth of ADSs year-to-date under its share buyback program.
The company faces a challenging macro environment in China but sees opportunities in omnichannel expansion and brand management services.
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