Shares of Chinese e-commerce company Baozun (BZUN 2.63%) took a hit on Thursday. The stock was down about 19.5% as of 10:51 a.m. EST.
The stock's slide follows the company's third-quarter update, which featured revenue below analysts' average forecast.
Baozun's revenue rose 35.3% year over year to RMB 1.5 billion, or $210 million. Analysts, on average, expected revenue of $214 million during the period. The company's non-GAAP (adjusted) earnings per share were $0.14 -- in line with what analysts were expecting.
Helping drive its revenue growth during the period was a 43% year-over-year increase in gross merchandise volume (GMV). Management said this was strong considering headwinds of "terminating our service agreement with one electronics brand and a challenging macroeconomic environment."
Management was upbeat about the company's momentum. In the company's third-quarter earnings release, Baozun CFO Robin Lu said, "We believe these solid results validate our strategic decision to both optimize our brand portfolio toward higher-quality growth and reinvest our profits to capture select emerging opportunities."
The CEO also noted that Baozun expects to convert "incremental GMV growth into revenue growth over the next few quarters as our service penetrates and new brand partners gradually ramp up operations."