Baozun Inc. (NASDAQ: BZUN) reported Q1 EPS of $0.13, $0.04 better than the analyst estimate of $0.09. Revenue for the quarter came in at $308.4 million versus the consensus estimate of $314.54 million.

First Quarter 2021 Financial Highlights

• Total net revenues were RMB2,020.5 million (US$1308.4 million), an increase of 32.6% year-over-year.
• Income from operations was RMB52.9 million (US$8.1 million), an increase of 313.4% year-over-year. Operating margin was 2.6%, compared with 0.8% in the same quarter of last year.
• Non-GAAP income from operations2 was RMB75.8 million (US$11.6 million), an increase of 105.9% year-over-year. Non-GAAP operating margin was 3.7%, compared with 2.4% in the same quarter of last year.
• Net income attributable to ordinary shareholders of Baozun Inc. was RMB1.3 million (US$0.2 million), compared with RMB2.2 million in the same quarter of last year.
• Non-GAAP net income attributable to ordinary shareholders of Baozun Inc.3 was RMB61.2 million (US$9.3 million), an increase of 135.5% year-over-year. Non-GAAP net margin was 3.0%, compared with 1.7% in the same quarter of last year.
• Basic and diluted net income attributable to ordinary shareholders of Baozun Inc. per American Depository Share (“ADS4”) were RMB0.02 (US$0.00) and RMB0.02 (US$0.00), respectively, compared with RMB0.04 and RMB0.04, respectively, for the same quarter of last year.
• Basic and diluted non-GAAP net income attributable to ordinary shareholders of Baozun Inc. per ADS5 were RMB0.83 (US$0.13) and RMB0.82 (US$0.13), respectively, compared with RMB0.44 and RMB0.44, respectively, for the same period of 2020.

Mr. Vincent Qiu, Chairman and Chief Executive Officer of Baozun, commented, “We are pleased to announce a solid quarter of high-quality growth as we kick off our medium-term strategic plan. In this new era of e-commerce, where store operations and store management increasingly rely on digital operating platforms and ecosystems, our belief that ‘technology empowers future success’ and our comprehensive infrastructure have consistently enabled us to extend our competitive advantage. We are thrilled that we have made faster-than-expected progress, especially in executing our omni-channel strategy and deepening our penetration into the luxury sector.”

“During the quarter, we refined our strategic priorities around sustainability and established a sustainability committee that reports directly to our board of directors. As the leader and a pioneer in the brand e-commerce service industry in China, we recognize and embrace our unique and pioneering role, and we will continue to work on building a sustainable and innovative ecosystem while striving to set new benchmarks for our industry. Meanwhile, we deepened our investments in talent and look forward to enabling our people to exceed their potential. We believe we are well on our way to achieving sustainable and profitable long-term growth as a result of the accelerated progress we have made so far this year,” Mr. Qiu concluded.

Mr. Arthur Yu, Chief Financial Officer of Baozun, commented, “With the acceleration of our omni-channel strategy, together with strong business diversification and efficiency improvements, we demonstrated the great resilience of our business model. We delivered a 33% year-over-year rise in total net revenues to RMB2 billion and a more than doubling in non-GAAP income from operations to RMB76 million. More importantly, we achieved outstanding improvement in operating efficiency, driven by greater fulfillment efficiency, highly effective digital marketing services and the implementation of the latest proprietary technology resulting from our continuous focus on innovation. Meanwhile, during the quarter, we entered into a few strategic alliances to reinforce and sharpen our value proposition and expand our addressable market. Going forward, we will continue to innovate to drive organic growth, and selectively explore strategic acquisitions when opportunities arise.”

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