What happened
Shares of Baozun (BZUN +11.75%) popped as much as 13% this morning after the company reported first-quarter earnings. The results were mixed compared to analyst expectations, and Baozun also authorized a new share repurchase program. As of 3:10 p.m. EDT, the stock was still up 8%.
So what
Revenue in the first quarter was $308.4 million, slightly shy of the $314.5 million in sales that Wall Street was forecasting. That resulted in adjusted earnings per share of $0.13, which beat the consensus estimate of $0.10 per share in adjusted profits. The Chinese e-commerce technology company said that gross merchandise volume (GMV) increased 44% to 13.2 billion yuan ($2.05 billion). Baozun now has 281 brand partners and 272 GMV brand partners.
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"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," CEO Vincent Qiu said in a release. "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."
Now what
Baozun's board of directors has authorized a $125 million share repurchase program to buy back a combination of American depositary shares, each of which represents three Class A shares, and/or Class A shares.
The company is working to implement a plan to optimize its cost structure, which should generate "meaningful cost savings" in the second half of 2021, according to Qiu.
