Baozun (NASDAQ:BZUN) Azioni

Baozun

Baozun Inc is an e-commerce service partner that helps brands execute their e-commerce strategies in China by selling their goods directly to customers online or by providing services to assist with their e-commerce operations. Its integrated end-to-end e-commerce service capabilities, omni-channel expertise, and technology-driven solutions. Company have two operating segments namely E-Commerce (including BEC and BZI) and Brand Management (BBM).

Baozun Inc

<figure class="wp-block-image size-full is-resized"><img loading="lazy" decoding="async" width="500" height="280" src="https://contributor-assets.benzinga.com/wp-content/uploads/2025/03/21062836/Baozun-0321.jpeg" alt="" class="wp-image-8446" style="width:920px;height:auto" srcset="https://contributor-assets.benzinga.com/wp-content/uploads/2025/03/21062836/Baozun-0321.jpeg 500w,https://contributor-assets.benzinga.com/wp-content/uploads/2025/03/21062836/Baozun-0321-300x168.jpeg 300w" sizes="(max-width: 500px) 100vw, 500px" /></figure>
The e-commerce services and brand management company's revenue rose 7.7% in the fourth quarter, as it announced plans to open a net 40 new Gap clothing stores in China this year
<h4 class="wp-block-heading">Key Takeaways:</h4>
<ul>
<li>Baozun reported its first net profit in more than three years in last year's fourth quarter, as its brand management and e-commerce services business posted strong growth</li>
<li>The company had 152 Gap stores across China at the end of last year, and plans to open another 40 net new stores in 2025</li>
</ul>
The latest&nbsp;<a href="https://www.prnewswire.com/news-releases/baozun-announces-fourth-quarter-and-fiscal-year-2024-unaudited-financial-results-302406876.html">quarterly report</a>&nbsp;from&nbsp;Baozun Inc.&nbsp;(BZUN.US; 9991.HK) had something for everyone. Its topline revenue continued to grow at a respectable rate, and its network of China-based Gap clothing stores posted same-store sales growth – a rare feat in the current environment of weak consumer sentiment. On the bottom line, the company also reported its first quarterly profit in more than three years and promised 2025 would be "transformative."
But investors weren't buying into any of that. The stock fell 12.7% on Thursday after the latest earnings announcement, throwing a damper on what otherwise looked like a very respectable report. Even after the selloff the stock is still up 15% over the last six months, which seems to show the investment community is becoming more confident in the company.
Reflecting that, five of seven analysts polled by Yahoo Finance rate Baozun a "buy," while the other two rate it a "hold." But investors don't think nearly as highly of the company, giving it a price-to-sales (P/S) ratio of just 0.17. By comparison,&nbsp;The Gap Inc.&nbsp;(GAP.US) trades at 0.52, and rival retailer&nbsp;Giordano&nbsp;(0709.HK) trades at 0.63. The discrepancies get even worse when we compare Baozun to other e-commerce services providers, which is Baozun's other main business. Domestic rival&nbsp;Weimob&nbsp;(2013.HK) trades at a P/S ratio of 3.12, while U.S. giant&nbsp;Salesforce&nbsp;(CMS.US) trades at 7.18.
To better understand why investors are so down on Baozun, we need to trace the company's history. It began as a provider of software services to e-commerce merchants, and was closely tied to Alibaba's (BABA.US; 9988.HK) ecosystem. To this day, Alibaba remains one of its major shareholders. But that business has largely stagnated in recent years.
More recently, the company made headlines in 2023 when it purchased Gap's China operations, launching Baozun's move into brand management. Not long afterwards, it also formed a joint venture with&nbsp;Authentic Brands Group&nbsp;to bring the U.S. brand owner's Hunter brand to Asia.
The move into brand management initially raised a lot of eyebrows due to its relative distance from Baozun's core service of providing e-commerce services. That brand management business also created a drag on Baozun's overall performance initially, as the company closed many Gap stores and tried to reposition the brand to make it more competitive. Those efforts appear to be finally yielding some results, and the brand management business now accounts for about a fifth of Baozun's revenue.
The company's total revenue rose 7.7% year-on-year in the fourth quarter to 3 billion yuan ($414 million) from 2.78 billion yuan, as it reported a second consecutive year of annual revenue growth for all 2024 after the figure contracted in 2021 and 2022. Fulfillment costs were flat year-on-year, while sales and marketing costs rose 17%.
As those two factors offset each other, the company reported a 100,000 yuan profit for the quarter, marking its first net profit since the second quarter of 2021. Chairman Vincent Qiu indicated the momentum is continuing in 2025, as analysts forecast the company will report an annual profit this year – its first since 2020.
"The year 2025 marks a combination of our strategic transformation and sets the stage for future growth," Qiu said on the company's earnings call. "We have strengthened our senior management team to drive this next phase."
<h4 class="wp-block-heading">Gap expansion</h4>
Next, we'll take a closer look at the company's two main businesses, starting with its newer brand management business that is entering a growth mode after an initial period of retrenchment. The Gap-brand stores still make up the bulk of that business, though Baozun said it recently opened its first Hunter outlets in Shanghai and Malaysia.
Product sales for its brand management business, mostly from Gap stores, rose 17.3% in the fourth quarter year-on-year to 535 million yuan from 456 million yuan a year earlier.
The company said it opened 40 new Gap stores in the second half of last year, including 16 in the fourth quarter, bringing its total to 152 Gap stores across China by the end of 2024. It said it plans to open another 50 Gap stores this year, which, when combined with closure of underperforming outlets, would give it 40 net new stores for the year.
Notably, the company said its Gap stores reported "low single digit same-store sales growth" in the fourth quarter, which looks quite promising in the current economic climate where many retailers are reporting declines. In one other noteworthy development, the company said it is working with franchisees to expand the chain into second-tier cities – a strategy increasingly used by many brands for expansion into China's smaller cities.
"While we opened new stores throughout the year, we also strategically closed underperforming locations to optimize our offline network, making 2024 a year of structural upgrades," said Ken Huang, CFO of Baozun Brand Management, on the earnings call. "Looking ahead, we plan to accelerate our expansion by prioritizing high traffic locations that maximize sales potential."
Huang added that following the recent openings of a Hunter store in Shanghai, the company is looking to expand that brand into other Chinese markets, such as Beijing, Shenzhen and Hangzhou.
On the e-commerce side, the company said its services revenue rose 9.3% year-on-year to 1.89 billion yuan in the fourth quarter from 1.73 billion a year earlier, fueled by double-digit gains for its online store operations and marketing services. But that was partly offset by a 4.3% decline for its e-commerce product sales to 572 million yuan from 598 million yuan a year earlier, as weak consumer sentiment hit that part of the business.
The positive performance by the brand management business, combined with strong results from e-commerce services offset the weakness in e-commerce sales, lifting Baozun's operating income to 73.2 million yuan from 6.4 million yuan a year earlier. And as we've already noted, the company also returned to a profit after more than three years of losses.
So, why the stock selloff? The one slightly worrisome sign was a drop in the gross margin for Baozun's brand management business, which fell to 50.4% in the fourth quarter from 52.9% a year earlier, with the company blaming store discounts offered as part of promotions. But such a small decline in one part of its business doesn't seem to justify the big stock selloff. Accordingly, the shares could have some potential upside if 2025 turns out to be as transformational as the company hopes.

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BZUN

Is Baozun Stock Sell-off A Buying Opportunity?

<h3>Gainers</h3>
<ul>
<li>SAG Holdings (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SAG#NASDAQ">SAG</a>) shares moved upwards by 58.5% to $1.07 during Thursday's regular session. The company's market cap stands at $10.5 million. </li>
<li>Rent the Runway (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RENT#NASDAQ">RENT</a>) shares rose 33.74% to $6.46. The market value of their outstanding shares is at $25.0 million. </li>
<li>Aureus Greenway (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AGH#NASDAQ">AGH</a>) stock rose 26.7% to $1.02. The company's market cap stands at $14.1 million. </li>
<li>Star Equity Hldgs (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/STRRP#NASDAQ">STRRP</a>) stock increased by 22.47% to $10.9. </li>
<li>Fitell (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FTEL#NASDAQ">FTEL</a>) shares increased by 20.72% to $0.88. The market value of their outstanding shares is at $17.6 million. </li>
<li>Park Ha Biological Tech (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PHH#NASDAQ">PHH</a>) stock increased by 17.74% to $11.45. The market value of their outstanding shares is at $301.8 million. </li>
</ul>
<h3>Losers</h3>
<ul>
<li>Mullen Automotive (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MULN#NASDAQ">MULN</a>) stock declined by 12.8% to $0.35 during Thursday's regular session. The company's market cap stands at $1.2 million. </li>
<li>Baozun (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BZUN#NASDAQ">BZUN</a>) shares decreased by 11.43% to $3.1. The company's market cap stands at $181.5 million. As per the news, the Q4 earnings report came out today. </li>
<li>Luminar Technologies (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LAZR#NASDAQ">LAZR</a>) stock declined by 11.3% to $6.42. The company's market cap stands at $213.8 million. The company's, Q4 earnings came out today. </li>
<li>Lands' End (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LE#NASDAQ">LE</a>) shares decreased by 10.63% to $10.22. The company's market cap stands at $316.2 million. As per the news, the Q4 earnings report came out today. </li>
<li>Vroom (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VRM#NASDAQ">VRM</a>) stock declined by 10.54% to $25.0. The company's market cap stands at $129.0 million. </li>
<li>Perfect Moment (AMEX:<a class="ticker" href="https://www.benzinga.com/stock/PMNT#AMEX">PMNT</a>) shares fell 10.17% to $1.23. 
See Also: <a href="http://www.benzinga.com/money/best-consumer-cyclical-stocks/" title="www.benzinga.com/money/best-consumer-cyclical-stocks/">www.benzinga.com/money/best-consumer-cyclical-stocks/</a></li>
</ul>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

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MULN

PMNT

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12 Consumer Discretionary Stocks Moving In Thursday's Intraday Session

Earnings

News

Baozun Q4 Adj EPADS $0.11 Up From $0.07 YoY, Sales $410.20M Up From $391.61M YoY

Baozun (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BZUN#NASDAQ">BZUN</a>) reported quarterly sales of $2.99 billion which beat the analyst consensus estimate of $2.92 billion by 2.40 percent. This is a 664.53 percent increase over sales of $391.61 million the same period last year.

Earnings Beats

Baozun Q4 Sales RMB2.99B Beat RMB2.92B Estimate

<h3>Companies Reporting Before The Bell</h3>
• Star Equity Hldgs (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/STRR#NASDAQ">STRR</a>) is projected to report quarterly loss at $0.17 per share on revenue of $14.00 million. 
• Academy Sports (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASO#NASDAQ">ASO</a>) is expected to report quarterly earnings at $1.82 per share on revenue of $1.68 billion. 
• Jabil (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JBL#NYSE">JBL</a>) is estimated to report quarterly earnings at $1.83 per share on revenue of $6.40 billion. 
• Mogo (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MOGO#NASDAQ">MOGO</a>) is likely to report quarterly loss at $0.08 per share on revenue of $12.77 million. 
• Cognition Therapeutics (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CGTX#NASDAQ">CGTX</a>) is expected to report earnings for its fourth quarter. 
• Alarum Technologies (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ALAR#NASDAQ">ALAR</a>) is likely to report quarterly earnings at $0.02 per share on revenue of $7.48 million. 
• InflaRx (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IFRX#NASDAQ">IFRX</a>) is estimated to report quarterly loss at $0.28 per share on revenue of $125 thousand. 
• Beasley Broadcast Group (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BBGI#NASDAQ">BBGI</a>) is likely to report earnings for its fourth quarter. 
• Adaptimmune Therapeutics (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ADAP#NASDAQ">ADAP</a>) is estimated to report quarterly loss at $0.15 per share on revenue of $8.42 million. 
• Monte Rosa Therapeutics (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GLUE#NASDAQ">GLUE</a>) is projected to report quarterly loss at $0.37 per share on revenue of $12.79 million. 
• Bragg Gaming Group (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BRAG#NASDAQ">BRAG</a>) is estimated to report earnings for its fourth quarter. 
• Autolus Therapeutics (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AUTL#NASDAQ">AUTL</a>) is likely to report quarterly loss at $0.24 per share on revenue of $2.98 million. 
• Darden Restaurants (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DRI#NYSE">DRI</a>) is estimated to report quarterly earnings at $2.79 per share on revenue of $3.22 billion. 
• FactSet Research Systems (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FDS#NYSE">FDS</a>) is likely to report quarterly earnings at $4.18 per share on revenue of $570.67 million. 
• Gambling.com Gr (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GAMB#NASDAQ">GAMB</a>) is likely to report quarterly earnings at $0.24 per share on revenue of $35.14 million. 
• Destination XL Group (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DXLG#NASDAQ">DXLG</a>) is likely to report quarterly earnings at $0.03 per share on revenue of $120.93 million. 
• Titan Machinery (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TITN#NASDAQ">TITN</a>) is estimated to report quarterly loss at $0.63 per share on revenue of $728.55 million. 
• Designer Brands (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DBI#NYSE">DBI</a>) is estimated to report quarterly loss at $0.49 per share on revenue of $719.32 million. 
• Caleres (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CAL#NYSE">CAL</a>) is expected to report quarterly earnings at $0.26 per share on revenue of $646.05 million. 
• NeueHealth (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NEUE#NYSE">NEUE</a>) is likely to report quarterly loss at $3.99 per share on revenue of $261.80 million. 
• Commercial Metals (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CMC#NYSE">CMC</a>) is estimated to report quarterly earnings at $0.30 per share on revenue of $1.75 billion. 
• Accenture (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ACN#NYSE">ACN</a>) is expected to report quarterly earnings at $2.81 per share on revenue of $16.61 billion. 
• ARS Pharmaceuticals (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SPRY#NASDAQ">SPRY</a>) is expected to report quarterly loss at $0.12 per share on revenue of $15.90 million. 
• ZEEKR Intelligent Tech (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ZK#NYSE">ZK</a>) is projected to report earnings for its fourth quarter. 
• Shoe Carnival (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SCVL#NASDAQ">SCVL</a>) is estimated to report quarterly earnings at $0.44 per share on revenue of $275.92 million. 
• 111 (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/YI#NASDAQ">YI</a>) is expected to report earnings for its fourth quarter. 
• Rockwell Medical (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RMTI#NASDAQ">RMTI</a>) is estimated to report quarterly earnings at $0.02 per share on revenue of $22.61 million. 
• VEON (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VEON#NASDAQ">VEON</a>) is expected to report quarterly earnings at $0.77 per share on revenue of $997.00 million. 
• Valneva (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VALN#NASDAQ">VALN</a>) is estimated to report quarterly loss at $0.22 per share on revenue of $56.43 million. 
• H World Group (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HTHT#NASDAQ">HTHT</a>) is projected to report quarterly earnings at $0.27 per share on revenue of $798.17 million. 
• 22nd Century Group (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/XXII#NASDAQ">XXII</a>) is estimated to report earnings for its fourth quarter. 
• Twin Vee PowerCats (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VEEE#NASDAQ">VEEE</a>) is projected to report earnings for its fourth quarter. 
• PDD Holdings (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PDD#NASDAQ">PDD</a>) is likely to report quarterly earnings at $2.56 per share on revenue of $15.68 billion. 
• Yiren Digital (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/YRD#NYSE">YRD</a>) is likely to report earnings for its fourth quarter. 
• Neuraxis (AMEX:<a class="ticker" href="https://www.benzinga.com/stock/NRXS#AMEX">NRXS</a>) is likely to report earnings for its fourth quarter. 
• SPDR Select Sector Fund - Consumer Discretionary (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLY#NYSE">XLY</a>) is projected to report earnings for its fourth quarter. 
• Baozun (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BZUN#NASDAQ">BZUN</a>) is expected to report earnings for its fourth quarter. 
• Lands' End (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LE#NASDAQ">LE</a>) is expected to report quarterly earnings at $0.57 per share on revenue of $458.69 million. 
<h3>Companies Reporting After The Bell</h3>
• Nike (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NKE#NYSE">NKE</a>) is likely to report quarterly earnings at $0.29 per share on revenue of $11.01 billion. 
• FedEx (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FDX#NYSE">FDX</a>) is likely to report quarterly earnings at $4.54 per share on revenue of $21.89 billion. 
• Micron Technology (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>) is expected to report quarterly earnings at $1.42 per share on revenue of $7.89 billion. 
• United States Antimony (AMEX:<a class="ticker" href="https://www.benzinga.com/stock/UAMY#AMEX">UAMY</a>) is estimated to report earnings for its fourth quarter. 
• SANUWAVE Health (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SNWV#NASDAQ">SNWV</a>) is projected to report earnings for its fourth quarter. 
• Motorsport Games (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSGM#NASDAQ">MSGM</a>) is projected to report quarterly loss at $0.48 per share on revenue of $3.30 million. 
• Skye Bioscience (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SKYE#NASDAQ">SKYE</a>) is projected to report earnings for its fourth quarter. 
• Quantum Computing (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QUBT#NASDAQ">QUBT</a>) is expected to report quarterly loss at $0.05 per share on revenue of $200 thousand. 
• Intellicheck (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IDN#NASDAQ">IDN</a>) is likely to report quarterly loss at $0.01 per share on revenue of $5.07 million. 
• Vaxart (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VXRT#NASDAQ">VXRT</a>) is likely to report quarterly loss at $0.11 per share on revenue of $15.68 million. 
• Flux Power Holdings (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FLUX#NASDAQ">FLUX</a>) is estimated to report quarterly loss at $0.09 per share on revenue of $14.50 million. 
• Cibus (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CBUS#NASDAQ">CBUS</a>) is likely to report quarterly loss at $0.85 per share on revenue of $1.75 million. 
• Tenon Medical (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TNON#NASDAQ">TNON</a>) is expected to report quarterly loss at $3.77 per share on revenue of $901 thousand. 
• Amprius Technologies (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AMPX#NYSE">AMPX</a>) is estimated to report quarterly loss at $0.10 per share on revenue of $7.14 million. 
• Torrid Holdings (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CURV#NYSE">CURV</a>) is projected to report quarterly loss at $0.07 per share on revenue of $263.00 million. 
• Lennar (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LEN#NYSE">LEN</a>) is expected to report quarterly earnings at $1.73 per share on revenue of $7.44 billion. 
• Scholastic (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SCHL#NASDAQ">SCHL</a>) is projected to report quarterly loss at $0.78 per share on revenue of $347.68 million. 
• Arcadia Biosciences (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RKDA#NASDAQ">RKDA</a>) is projected to report quarterly loss at $0.50 per share on revenue of $1.15 million. 
• Macrogenics (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MGNX#NASDAQ">MGNX</a>) is estimated to report quarterly loss at $0.66 per share on revenue of $30.93 million. 
• TELA Bio (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TELA#NASDAQ">TELA</a>) is likely to report quarterly loss at $0.22 per share on revenue of $23.26 million. 
• Ouster (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/OUST#NASDAQ">OUST</a>) is likely to report quarterly loss at $0.26 per share on revenue of $30.00 million. 
• Luminar Technologies (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LAZR#NASDAQ">LAZR</a>) is projected to report quarterly loss at $0.15 per share on revenue of $17.43 million. 
• Planet Labs (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PL#NYSE">PL</a>) is expected to report quarterly loss at $0.02 per share on revenue of $62.20 million. 
• KinderCare Learning (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KLC#NYSE">KLC</a>) is estimated to report quarterly earnings at $0.05 per share on revenue of $645.37 million. 
• Runway Gwth Fin (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RWAY#NASDAQ">RWAY</a>) is likely to report quarterly earnings at $0.41 per share on revenue of $36.19 million. 
This article was generated by Benzinga's automated content engine and reviewed by an editor.

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Citigourp Global Markets 2% Protected Notes Linked To The Djia

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Select Sector SPDR-Consumer Discretionary

XXII

Earnings Scheduled For March 20, 2025

Citigroup analyst Alicia Yap maintains Baozun (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BZUN#NASDAQ">BZUN</a>) with a Buy and raises the price target from $3.9 to $4.2.

Price Target

Analyst Ratings

Citigroup Maintains Buy on Baozun, Raises Price Target to $4.2

Baozun (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BZUN#NASDAQ">BZUN</a>) reported quarterly losses of $(1.12) per share. This is a 12.5 percent increase over losses of $(1.28) per share from the same period last year. The company reported quarterly sales of $2.06 billion which beat the analyst consensus estimate of $1.91 billion by 7.98 percent. This is a 12.80 percent increase over sales of $1.82 billion the same period last year.

Baozun Q3 2024 GAAP EPS RMB(1.12) Up From RMB(1.28) YoY, Sales RMB2.06B Beat RMB1.91B Estimate

<h3>Companies Reporting Before The Bell</h3>
• Vestis (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VSTS#NYSE">VSTS</a>) is likely to report quarterly earnings at $0.13 per share on revenue of $690.99 million. 
• Nano X Imaging (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NNOX#NASDAQ">NNOX</a>) is expected to report quarterly loss at $0.15 per share on revenue of $3.53 million. 
• Warner Music Gr (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WMG#NASDAQ">WMG</a>) is estimated to report quarterly earnings at $0.31 per share on revenue of $1.60 billion. 
• Construction Partners (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ROAD#NASDAQ">ROAD</a>) is estimated to report quarterly earnings at $0.57 per share on revenue of $538.05 million. 
• Cerence (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CRNC#NASDAQ">CRNC</a>) is projected to report quarterly loss at $0.38 per share on revenue of $47.65 million. 
• BJ's Wholesale Club (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BJ#NYSE">BJ</a>) is projected to report quarterly earnings at $0.93 per share on revenue of $5.11 billion. 
• Ituran Location &amp; Control (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ITRN#NASDAQ">ITRN</a>) is projected to report quarterly earnings at $0.66 per share on revenue of $85.44 million. 
• Baozun (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BZUN#NASDAQ">BZUN</a>) is projected to report earnings for its third quarter. 
• Shoe Carnival (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SCVL#NASDAQ">SCVL</a>) is likely to report quarterly earnings at $0.65 per share on revenue of $316.23 million. 
• Atkore (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ATKR#NYSE">ATKR</a>) is projected to report quarterly earnings at $2.47 per share on revenue of $748.32 million. 
• iQIYI (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IQ#NASDAQ">IQ</a>) is likely to report quarterly earnings at $0.04 per share on revenue of $1.02 billion. 
• GreenTree Hospitality Gr (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GHG#NYSE">GHG</a>) is likely to report earnings for its third quarter. 
• PDD Holdings (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PDD#NASDAQ">PDD</a>) is projected to report quarterly earnings at $2.82 per share on revenue of $14.47 billion. 
• Deere (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DE#NYSE">DE</a>) is projected to report quarterly earnings at $3.87 per share on revenue of $9.35 billion. 
• KE Holdings (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BEKE#NYSE">BEKE</a>) is expected to report quarterly earnings at $0.21 per share on revenue of $3.23 billion. 
• Baidu (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>) is expected to report quarterly earnings at $2.35 per share on revenue of $4.69 billion. 
• Yunji (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/YJ#NASDAQ">YJ</a>) is likely to report earnings for its third quarter. 
• Evogene (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EVGN#NASDAQ">EVGN</a>) is projected to report quarterly loss at $1.01 per share on revenue of $2.85 million. 
• Lotus Technology (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LOT#NASDAQ">LOT</a>) is expected to report earnings for its third quarter. 
• RealReal (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/REAL#NASDAQ">REAL</a>) is projected to report earnings for its fourth quarter. 
<h3>Companies Reporting After The Bell</h3>
• Copart (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CPRT#NASDAQ">CPRT</a>) is estimated to report quarterly earnings at $0.37 per share on revenue of $1.10 billion. 
• UGI (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UGI#NYSE">UGI</a>) is likely to report quarterly loss at $0.29 per share on revenue of $1.65 billion. 
• Matthews International (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MATW#NASDAQ">MATW</a>) is likely to report quarterly earnings at $0.38 per share on revenue of $440.46 million. 
• Gap (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GAP#NYSE">GAP</a>) is projected to report quarterly earnings at $0.58 per share on revenue of $3.81 billion. 
• Logility Supply Chain (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LGTY#NASDAQ">LGTY</a>) is projected to report quarterly earnings at $0.09 per share on revenue of $25.93 million. 
• Elastic (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ESTC#NYSE">ESTC</a>) is estimated to report quarterly earnings at $0.38 per share on revenue of $354.28 million. 
• Ross Stores (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ROST#NASDAQ">ROST</a>) is estimated to report quarterly earnings at $1.40 per share on revenue of $5.15 billion. 
• NetApp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NTAP#NASDAQ">NTAP</a>) is estimated to report quarterly earnings at $1.78 per share on revenue of $1.64 billion. 
• Intuit (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTU#NASDAQ">INTU</a>) is estimated to report quarterly earnings at $2.36 per share on revenue of $3.14 billion. 
• Geospace Technologies (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GEOS#NASDAQ">GEOS</a>) is projected to report earnings for its fourth quarter. 
• Natural Grocers (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NGVC#NYSE">NGVC</a>) is expected to report earnings for its fourth quarter. 
This article was generated by Benzinga's automated content engine and reviewed by an editor.

ATKR

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INTU

ITRN

LGTY

MATW

NGVC

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NTAP

REAL

ROAD

ROST

VSTS

Earnings Scheduled For November 21, 2024

WIIM

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BILI

DADA

New Oriental Education & Technology Group

FUTU

MNSO

MSCI

NTES

YUMC

ZLAB

Shares of US-listed Chinese companies are trading higher on continued strength amid stimulus efforts. September PMI data beat estimates but factory activity fell, which may raise stimulus hopes.

<h3>Gainers</h3>
<ul>
<li>TCTM Kids IT Education (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TCTM#NASDAQ">TCTM</a>) stock increased by 41.0% to $1.34 during Friday's regular session. The company's market cap stands at $13.1 million. </li>
<li>Uxin (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/UXIN#NASDAQ">UXIN</a>) stock rose 35.08% to $3.82. The company's market cap stands at $718.5 million. As per the news, the Q1 earnings report came out 4 days ago. </li>
<li>ZEEKR Intelligent Tech (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ZK#NYSE">ZK</a>) shares increased by 14.29% to $20.95. The market value of their outstanding shares is at $5.1 billion. </li>
<li>Baozun (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BZUN#NASDAQ">BZUN</a>) shares rose 13.99% to $3.34. The company's market cap stands at $197.0 million. </li>
<li>Serve Robotics (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SERV#NASDAQ">SERV</a>) stock rose 13.52% to $8.73. The market value of their outstanding shares is at $345.7 million. </li>
<li>17 Education &amp; Technology (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/YQ#NASDAQ">YQ</a>) shares increased by 13.08% to $2.68. The company's market cap stands at $20.7 million. </li>
</ul>
<h3>Losers</h3>
<ul>
<li>Kaixin Hldgs (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KXIN#NASDAQ">KXIN</a>) shares decreased by 10.7% to $0.1 during Friday's regular session. The market value of their outstanding shares is at $5.7 million. </li>
<li>Color Star Tech (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ADD#NASDAQ">ADD</a>) shares declined by 9.06% to $1.16. The company's market cap stands at $65.1 million. </li>
<li>Mullen Automotive (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MULN#NASDAQ">MULN</a>) stock declined by 9.03% to $3.84. The company's market cap stands at $6.2 million. </li>
<li>Sonder Holdings (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOND#NASDAQ">SOND</a>) stock fell 8.21% to $4.81. The company's market cap stands at $53.0 million. </li>
<li>Fitell (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FTEL#NASDAQ">FTEL</a>) stock declined by 7.62% to $16.01. The company's market cap stands at $321.8 million. 
See Also: <a href="http://www.benzinga.com/money/best-consumer-cyclical-stocks/" title="www.benzinga.com/money/best-consumer-cyclical-stocks/">www.benzinga.com/money/best-consumer-cyclical-stocks/</a></li>
</ul>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

KXIN

SERV

SOND

TCTM

UXIN

11 Consumer Discretionary Stocks Moving In Friday's Intraday Session

BABA

TCOM

XPEV

Shares of US-listed Chinese companies are trading higher possibly amid continued strength following a report suggesting China will issue up to $284 billion of sovereign debt as part of a stimulus.

Shares of Chinese stocks are trading higher following a report suggesting China will issue up to $284 billion of sovereign debt as part of a stimulus.

Editor&#8217;s note: This story has been corrected to reflect that analyst Koji Ikeda covers Elastic N.V. for Bank of America Securities.
Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades and downgrades, please see our <a href="https://www.benzinga.com/analyst-stock-ratings">analyst ratings page.</a>
<ul>
<li><a href="https://www.benzinga.com/analyst-stock-ratings/analyst/58e64305b85e9300014c97f9/wamsi-mohan">B of A Securities analyst Koji Ikeda</a> downgraded the rating for Elastic N.V. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ESTC#NYSE">ESTC</a>) from Buy to Neutral and lowered the price target from $140 to $94. Elastic shares gained 0.6% to close at $103.64 on Thursday. <a href="https://www.benzinga.com/quote/estc/analyst-ratings">See how other analysts view this stock.</a></li>
<li>Gordon Haskett analyst Chuck Grom downgraded Dollar General Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DG#NYSE">DG</a>) from Buy to Hold and announces $90 price target. Dollar General shares fell 32.2% to close at $84.03 on Thursday. <a href="https://www.benzinga.com/quote/dg/analyst-ratings">See how other analysts view this stock.</a></li>
<li><a href="https://www.benzinga.com/analyst-stock-ratings/analyst/59c264af6e84a70001eb1bb9/oliver-chen">TD Cowen analyst Oliver Chen</a> downgraded the rating for Kohl&#8217;s Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KSS#NYSE">KSS</a>) from Buy to Hold and lowered the price target from $25 to $21. Kohl&#8217;s shares rose 0.6% to close at $19.77 on Thursday. <a href="https://www.benzinga.com/quote/kss/analyst-ratings">See how other analysts view this stock.</a></li>
<li>Stifel analyst Selman Akyol downgraded the rating for EnLink Midstream, LLC (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ENLC#NYSE">ENLC</a>) from Buy to Hold and maintained the price target of $15. EnLink Midstream shares gained 9.4% to settle at $14.40 on Thursday. <a href="https://www.benzinga.com/quote/enlc/analyst-ratings">See how other analysts view this stock.</a></li>
<li><a href="https://www.benzinga.com/analyst-stock-ratings/analyst/620ce684a9d04f0001c832d4/leo-you">CLSA analyst Leo You</a> downgraded Baozun Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BZUN#NASDAQ">BZUN</a>) from Outperform to Hold and cut the price target from $2.8 to $2.2. Baozun shares gained 4.5% to close at $2.32 on Thursday. <a href="https://www.benzinga.com/quote/bzun/analyst-ratings">See how other analysts view this stock.</a></li>
</ul>
Considering buying DG stock? Here&#8217;s what analysts think: 
<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" width="1024" height="523" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/08/30085157/image-317-1024x523.png" alt="" class="wp-image-523090" style="width:605px;height:auto" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/08/30085157/image-317-1024x523.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/08/30085157/image-317-300x153.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/08/30085157/image-317-768x392.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/08/30085157/image-317.png 1327w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>

Downgrades

Pre-Market Outlook

Markets

Trading Ideas

ENLC

This Dollar General Analyst Is No Longer Bullish; Here Are Top 5 Downgrades For Friday (CORRECTED)

CLSA analyst Leo You downgrades Baozun (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BZUN#NASDAQ">BZUN</a>) from Outperform to Hold and lowers the price target from $2.8 to $2.2.

CLSA Downgrades Baozun to Hold, Lowers Price Target to $2.2

Baozun Inc&nbsp;(NASDAQ:&nbsp;BZUN) reported a fiscal second-quarter 2024 revenue growth of 3.1% year-on-year to 2.39 billion Chinese yuan ($329.0 million), beating the&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/08/n40596271/baozun-announces-second-quarter-2024-unaudited-financial-results" rel="noreferrer noopener">analyst&nbsp;consensus estimate of $325.0 million</a>.
The brand e-commerce solution provider&#8217;s adjusted loss per ADS was $0.01, compared to the&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">analyst consensus earnings estimate of $0.06</a>.
The increase in total net revenues was mainly due to a 9.4% growth in service revenue. The stock price gained after the results.
By the end of the quarter, approximately 45.8% of the BEC segment&#8217;s brand partners engaged with it for store operations in at least two channels.
Segments: Product sales revenue decreased by 6.4% Y/Y to $119.8 million.&nbsp;Services revenue increased 9.4% Y/Y to $209.3 million.
The adjusted operating margin was 0.40% versus&nbsp;0.03% a year ago.&nbsp;The company held $392.6 million in cash and equivalents as of June-end.
Chair and CEO Vincent Qiu: &#8220;I&#8217;m pleased that in the second quarter, E-Commerce revenue returned to growth after ten quarters of contraction, highlighting our effective revitalization efforts in both services and product sales&#8230; Brand Management continued to reduce its operating losses and accelerated its store expansion plans. We have also been working more closely with Gap Inc to maximize its global assets in the Chinese market.&#8221; 
Baozun&nbsp;stock plunged over 45% in the last 12 months as the company battled a weak domestic economy and cutthroat e-commerce competition.
Price Action:&nbsp;BZUN stock traded higher by 4.39% at $2.38 premarket at&nbsp;the last check Wednesday.

Baozun Q2: Topline Growth, CEO Highlights E-Commerce Growth After Long Slump, Gap Partnership

Baozun Q2 Adj EPADS $(0.01) Misses $0.06 Estimate, Sales $329.01M Beat $325.04M Estimate

<h4>Key Takeaways:</h4>
<ul>
<li>EDA&rsquo;s revenue rose 71% last year on strong demand for its logistics services for Chinese cross-border e-commerce merchants</li>
<li>The company&rsquo;s &ldquo;pre-sale stocking model&rdquo; could give it an advantage as the direct-shipping model used by rivals Temu and Shein comes under fire in the U.S.</li>
</ul>
By Doug Young
Temu and Shein may be getting all the attention these days, with their rock-bottom prices for trendy clothing and other e-commerce knickknacks that are mailed directly from factories in China to Western consumers. But newly listed&nbsp;EDA Holdings Ltd.&nbsp;is offering a compelling alternative for cross-border e-commerce, especially as Temu and Shein come under fire from U.S. politicians.
EDA shares made their Hong Kong trading debut last week, jumping more than 80% on their first day as it raised a relatively modest HK$223 million ($28.5 million)&nbsp;<a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2024/0527/2024052701491.pdf">by selling</a>&nbsp;97.6 million shares for HK$2.28 apiece. The share price has retreated since those first-day gains, but was still 51% ahead of their IPO price at their latest close of HK$3.44 last Friday.
EDA operates a suite of cloud-based services providing logistics to cross-border Chinese e-commerce merchants selling to the U.S., Europe and Australia. Such services run the range from first-mile international freight services inside China, to last-mile fulfillment services in destination countries for products sold via e-commerce.
At their latest level, the company, commands a respectable &ndash; but not overly exciting &ndash; price-to-earnings (P/E) ratio of 20, with a similarly respectable but not eye-popping price-to-sales (P/S) ratio of 1.16. The P/S trails the 1.65 for&nbsp;Weimob&nbsp;(2013.HK) but is well ahead of the 0.13 for&nbsp;Baozun(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/bzun#NASDAQ">BZUN</a>), both providers of services for domestic Chinese e-commerce merchants. U.S. giants&nbsp;Shopify&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/shop#NYSE">SHOP</a>) and&nbsp;Salesforce&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/crm#NYSE">CRM</a>) both trade much higher with P/S ratios of 10 and 6.5, respectively.
EDA&rsquo;s lower multiples compared with the global giants probably owe at least partly to its relatively small size. Even after the big post-IPO gains, the company&rsquo;s market cap still stands at a relatively modest HK$1.5 billion, or just under $200 million. According to&nbsp;<a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2024/0528/2024050602410.htm">its prospectus</a>, first filed in February, the company isn&rsquo;t exactly at the head of its class, ranked as the seventh-largest provider of export e-commerce supply chain solutions based on 2022 revenue.
The business of selling Chinese goods overseas via e-commerce has been growing rapidly in recent years, as Beijing encourages its manufacturers to sell their wares directly to consumers abroad. The B2C market for such e-commerce exports grew 28.4% annually in terms of gross merchandise value (GMV) between 2017 and 2022 to reach 3.22 trillion yuan ($445 billion) in 2022, according to third-party data in the prospectus. That growth is expected to slow somewhat to 13.4% annually over the next few years, reaching 6 trillion yuan by 2027.
The rapid explosion has led to a concurrent boom in demand for related services like EDA&rsquo;s. The B2C export e-commerce supply chain solutions market grew 28.8% annually between 2017 and 2022, reaching 402 billion yuan in 2022. EDA said that rapid growth was partly due to the pandemic, as people turned to online buying as many shops closed. It added the growth is expected to slow to about 9.1% annually from 2022 to 2027.
<h4>Pre-sale stocking model</h4>
Founded in 2014 in the Southern boomtown of Shenzhen, EDA spent most of its life as an independent company controlled by founder Liu Yong before being taken over by the larger&nbsp;China Lesso Group Holdings Ltd.&nbsp;(2128.HK) in 2021. Lesso, which provides logistics services for goods being shipped from China to Southeast Asia, decided to spin off EDA to give it more flexibility to conduct its own business, including its own fundraising.
EDA differs from big names like Temu and Shein in its use of a business model that stocks its customers&rsquo; goods in locally based warehouses in the countries where those goods will ultimately be sold. Such a &ldquo;pre-sale stocking model&rdquo; allows for quick deliveries once an order is placed. To facilitate that model, EDA works with 40 local warehouse operators in the U.S., six in Canada and another seven combined in Germany, Britian and Australia.
By comparison, companies like Temu and Shein use a system of directly shipping products from China to the countries where buyers are located. Such a system carries less risk of accumulating unsold inventory, but takes far more time for deliveries to reach their destination, and is also less practical for returned items.
More recently, the direct shipment model has also faced a new type of risk, as the U.S. explores closing a loophole that allows Shein and Temu to sell their cross-border e-commerce goods in the U.S. without paying any import tariffs. The closing of that loophole would instantly make those products much more expensive, eliminating one of the key advantages they enjoy. Such a move would work to the advantage of EDA and others who use the pre-sale stocking model, since all of their goods already pay import tariffs.
In terms of financials, EDA&rsquo;s growth looks quite strong in the last two years, which partly explains why its latest P/E and P/S look relatively low. The company&rsquo;s revenue jumped 71% last year to 1.21 billion yuan from 709 million yuan, though the growth rate was quite a bit slower at 21% the previous year.
Unlike many newly listed companies we write about that rely on a handful of customers, EDA also looks relatively attractive for its high degree of diversification. Of the company&rsquo;s 850 customers over the last three years, the top five accounted for just a third of its revenue. Its top customer each year accounted for about 12% of revenue.
The company&rsquo;s gross margin has stood between 15% and 16% over the last three years, which looks comparable to what you&rsquo;d expect from a logistics operator, even though EDA likes to point out it uses an &ldquo;asset-light&rdquo; model that relies on third parties to supply most of its logistics. The company is relatively profitable, posting a profit of 69.4 million yuan last year, and doesn&rsquo;t appear to have any cash problems, with positive cash flow in each of the last three years.
At the end of the day, the company looks fairly solid in terms of its market position and focus on a few key markets. It could also benefit as Temu, Shein and other companies using the direct shipment model come under fire. Its smaller size could be a drawback for investors, though some may argue it might deserve a higher valuation due to its solid growth potential.
This article is from an unpaid external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.

Penny Stocks

SHOP

EDA Woos Investors With Its Cross-Border e-Commerce Story

Baozun Inc&nbsp;(NASDAQ:&nbsp;BZUN) reported a fiscal first-quarter 2024 revenue growth of 4.9% year-on-year to 1.98 billion Chinese yuan ($274.2 million), beating the&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/05/n39034204/baozun-announces-first-quarter-2024-unaudited-financial-results" rel="noreferrer noopener">analyst&nbsp;consensus estimate of $269.6 million</a>.
Adjusted loss per ADS was $0.03, compared to the&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">analyst consensus estimate of $0.00</a>. The stock price gained after the results.
The increase in total net revenues was mainly due to higher product sales revenue of Brand Management.
By the end of the quarter, approximately 42.8% of the BEC segment&#8217;s brand partners engaged with it for store operations in at least two channels.
Segments:&nbsp;Product sales revenue increased by 6.2% Y/Y to $98 million.&nbsp;
Services revenue increased 4.1% Y/Y to $176.2 million.
The adjusted operating margin was negative&nbsp;0.9% vs.&nbsp;negative&nbsp;0.5% a year ago.&nbsp;
The company held $408.1 million in cash and equivalents as of March-end.
Vincent Qiu, Chairman and Chief Executive Officer of Baozun, commented, &#8220;E-Commerce&nbsp;has made progress in growing service revenue and introducing high-quality exclusive distribution models. Brand Management continues to advance in transforming Gap China, launching several&nbsp;China-for-China&nbsp;products and merchandising programs, which have shown positive market acceptance.&#8221;
Baozun stock lost 32% in value in the last 12 months. Investors can gain exposure to the stock via&nbsp;Dimensional ETF Trust Dimensional Emerging Markets Core Equity 2 ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DFEM#NYSE">DFEM</a>) and&nbsp;Dimensional Emerging Core Equity Market ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DFAE#NYSE">DFAE</a>).
Price Action:&nbsp;BZUN shares traded higher by 5.17% at $2.85 premarket at&nbsp;the last check Tuesday.

Dimensional Emerging Core Equity Market ETF

DFAE

Dimensional ETF Trust Dimensional Emerging Markets Core Equity 2 ETF

DFEM

Baozun Beats Revenue Estimates with Strong Q1 Growth, Shares Surge

Baozun Q1 Adj EPADS $(0.03), Same YoY, Sales $274.19M Beat $269.61M Estimate

Key Takeaways:
<ul>
<li>Baozun&rsquo;s revenues rose 5% last year following its acquisition of Gap China, which represented 14% of total annual sales</li>
<li>Product sales from the company&rsquo;s older e-commerce business fell by 21% last year, while e-commerce services revenue also slumped by 5%</li>
</ul>
By Edith Terry
Baozun Inc.&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/bzun#NASDAQ">BZUN</a>) has been undergoing a major transformation this past year, buying brands and investing in a new offshore business as it diversifies beyond its status as one of China&rsquo;s largest e-commerce service providers. But what exactly is happening at this company, whose major stakeholders include e-commerce giant Alibaba (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/baba#NYSE">BABA</a>)?
A few new hints came last week, when Baozun released its&nbsp;<a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2024/0419/2024041901276.pdf">annual report</a>&nbsp;for 2023 and announced&nbsp;<a href="https://www.prnewswire.com/news-releases/baozun-strengthens-leadership-team-302121995.html">two senior management moves</a>. Catherine Zhu was named as the company&rsquo;s new CFO, while Arthur Yu relinquished his former CFO position to focus on his other role as president of Baozun E-commerce. Both joined the company four years ago, with the latest shift apparently aimed at giving Yu more time to focus on reviving Baozun&rsquo;s core e-commerce services business.
Baozun&rsquo;s Hong Kong-listed shares fell 4% the day after the announcement, in the latest sign of lackluster investor interest in the company&rsquo;s ongoing transformation. The company previously announced its 2023 financial results in March, meaning the latest decline was likely in response to the executive moves and new details in the annual report. The company&rsquo;s Nasdaq-listed shares have lost more than 40% of their value over the last 52 weeks.
The annual report sheds some light on Baozun&rsquo;s latest thinking. It is taking its year-old brand management business in two new directions domestically, while outside China it&rsquo;s also heading south &ndash; to Southeast Asia, that is. Its purchase of&nbsp;Gap Inc.&rsquo;s&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gps#NYSE">GPS</a>) China operations last year and its 51% joint venture formed with privately owned brand owner&nbsp;Authentic Brands Group&nbsp;just months later have become templates for the company&rsquo;s two new brand-related businesses, Baozun Brand Management (BBM) and Baozun International (BZI).
Baozun E-commerce remains at the core of the company&rsquo;s brand-management business in China, providing back-office e-commerce supply chain management services for brands. Baozun International is doing the same thing internationally, initially in Southeast Asia. CEO Vincent Qiu said on the company&rsquo;s latest earnings call in March that Gap China, which lies at the heart of Baozun Brand Management, has sharply narrowed its operating losses as the company works to recast the chain as a more upscale brand.
&ldquo;This breakthrough in our first year is the result of having established a solid foundation for growth and success in brand management,&rdquo; Qiu said. &ldquo;Baozun Brand Management is a key component of Baozun Group&rsquo;s second growth curve. Baozun International represents a longer-term opportunity for which we continue to lay the business foundation and infrastructure.&rdquo;
<h3>Unimpressive Numbers</h3>
While the vision sounds good in theory, the actual numbers aren&rsquo;t too impressive just yet. Baozun&rsquo;s annual revenues for 2023, which includes 1.3 billion yuan from Gap China, rose just 5% to 8.8 billion yuan ($1.2 billion). The company&rsquo;s core business providing e-commerce services to other brands slumped by 5% to 5.5 billion yuan, while revenue from product sales through e-commerce tumbled by an even larger 21% to 2 billion yuan.
Within the product sales category, revenue from appliance sales was down by 29%, and electronics was down by 56%, reflecting weak buying sentiment in China as consumers avoid big-ticket items.
The company lost 278.4 million yuan for the year, narrowing from a 653 million yuan loss in 2022. The company&rsquo;s Brand Management unit, which mostly includes the Gap China operation, posted a 188 million yuan adjusted operating loss for the year. The chain closed 86 stores before the acquisition, and Baozun inherited operating losses from the chain.&nbsp;
Baozun&rsquo;s transformation comes amid painful changes taking place in China&rsquo;s e-commerce realm, which is showing signs of maturing after years of strong growth. Major platforms, from Alibaba&rsquo;s Tmall to Tencent&rsquo;s WeChat Channels, are struggling with weak consumer sentiment domestically. Luxury foreign brands that were once one of Baozun&rsquo;s main client groups, have also been facing new competition from home-grown luxury brands.
Baozun began its business in 2007 with a smart idea &ndash; offering back-office functions to big-name foreign brands looking to tap China&rsquo;s rising e-commerce wave at that time. The company&rsquo;s main partner for its core e-commerce services business is Alibaba, which owns 14.4 % of Baozun. Its dependence on Alibaba eventually became a liability by limiting Baozun&rsquo;s growth opportunities, and the company later began to diversify by supplying e-commerce services to brand partners across a range of other platforms.
So where do things stand now? Baozun&rsquo;s e-commerce division has responded to the disruptive impact of Douyin, the domestic version of short video sensation TikTok, in the domestic e-commerce ecosystem by launching a &ldquo;Creative Content to Commerce&rdquo; studios and by acquiring Location, a top-tier Douyin partner, according to the annual report.
Baozun Brand Management has been revamped from 70 historical systems into a single integrated operating platform, which will be the foundation for that unit&rsquo;s future growth. Baozun has worked hard to shed the discount brand image associated with Gap stores, and implemented a new &ldquo;China for China&rdquo; brand philosophy.
The initial major piece of Baozun International is Authentic Brands&rsquo; Hunter brand, with Baozun holding intellectual property rights to the brand in Greater China and Southeast Asia. Baozun International has hired 150 employees across Singapore, Malaysia, Thailand, South Korea, the Philippines, Hong Kong and Taiwan. It will introduce the Hunter brand, famous for its outdoor wear and rubber Wellington boots, into Singapore and Malaysia this year.
The international unit has formed a similar collaboration with Japan&rsquo;s Honda Motor Co., which will launch in Singapore and Malaysia later this year, according to Qiu, adding the pair will work together with both online and offline initiatives.
Baozun&rsquo;s current price to sales (P/S) ratio of 0.13 looks quite depressed compared to domestic competitor&nbsp;Weimob&nbsp;(2013.HK), which trades at 1.38. Global peers&nbsp;Salesforce&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/crm#NYSE">CRM</a>) and&nbsp;Shopify(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/shop#NYSE">SHOP</a>) both trade much higher with ratios of 7.81 and 13.58, respectively. Baozun&rsquo;s depressed valuation may explain why six of seven analysts canvassed by Yahoo Finance rate the company as a &ldquo;strong buy&rdquo; or &ldquo;buy.&rdquo; And at least one broker, Daiwa Capital, has recently upgraded the stock to a &ldquo;buy.&rdquo;
This article is from an unpaid external contributor. It does not represent Benzinga&#39;s reporting and has not been edited for content or accuracy.

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