What happened
Shares of Baozun (BZUN 6.18%) were up 10.2% as of 3 p.m. ET Monday, according to data provided by S&P Global Market Intelligence, after the Chinese e-commerce solutions company announced a narrower-than-expected loss for its second quarter of 2023.
So what
Baozun's quarterly revenue climbed 9.3% year over year, to $320 million, translating to a non-GAAP (adjusted) net loss of $0.6 million, or $0.01 per share. Analysts, on average, were expecting a wider adjusted net loss of $0.03 per share, but on higher revenue of $350.6 million.
Baozun Chairman and CEO Vincent Qiu noted the company continues to face a "challenging" macroeconomic environment, but also pointed to progress in each of its core e-commerce, brand management, and international businesses.
"We are embarking on a transition journey in the e-commerce business to realign our people, resources, and business processes to adapt to the changing market dynamics," said Baozun CFO Arthur Yu. "We have full confidence that once this transition is successfully executed, our e-commerce business will be better positioned to drive sustainable growth and achieve even greater success in the market."
Now what
Baozun stock is still down more than 20% over the past month even after today's bounce, largely driven by fears of a significant slowdown in growth from the Chinese economy. But given a broad rally from the market as a whole today -- with the Nasdaq Composite index and S&P 500 each up more than half a percent today -- it seems investors are breathing a sigh of relief over Baozun's better-than-feared bottom line and encouraging management commentary.
