Baozun Inc. (NASDAQ:BZUN) reported fourth-quarter adjusted earnings of RMB2.75 per ADS ($0.39) on Wednesday, surpassing analyst expectations of RMB1.80.
Despite the earnings beat, the company’s shares fell about 1.4% in premarket trading following the release of the results.
The brand e-commerce solutions provider generated quarterly revenue of RMB3.17 billion ($453.6 million) for the period ending December 31, 2025, marking a 5.9% year-over-year increase from RMB2.99 billion. Adjusted operating profit jumped 91.4% to RMB197.7 million, while operating margin improved to 6.2%, up from 3.5% a year earlier.
Baozun said its Brand Management segment delivered its first breakeven quarter for the Gap brand, recording adjusted operating profit of RMB1.8 million compared with a loss of RMB34.2 million in the same period last year.
“Baozun concluded 2025 with a strong fourth quarter, successfully completing our three-year transformation,” said Vincent Qiu, Chairman and Chief Executive Officer. “BEC has now evolved into a high-quality cash engine. BBM achieved a key milestone by delivering GAP’s first breakeven quarter, showcasing the progress we’ve made in merchandising, brand positioning, and retail productivity.”
The company’s E-Commerce segment reported adjusted operating profit of RMB195.9 million, representing a 42.5% increase year over year. Services revenue grew 2.4% to RMB1.93 billion, supported by a 19.0% rise in digital marketing and IT solutions.
Revenue from product sales increased 11.9% to RMB1.24 billion, with product sales from the Brand Management division climbing 24.2% to RMB663.7 million.
For the full fiscal year 2025, Baozun posted total revenue of RMB9.95 billion, up 5.6% compared with the previous year. Adjusted operating profit reached RMB126.2 million, a significant improvement from RMB10.6 million recorded in 2024.
Looking ahead, the company set a goal of achieving at least RMB550 million in annual adjusted operating profit by 2028, supported by higher margins in its E-Commerce operations and continued growth in its Brand Management business.