Baozun, Inc. Sponsored ADR Class A (09991, BZUN.US) significantly improved its third-quarter profit indicators, with visibility of growth under the transformation dividend soaring.

The third quarter report of Baozun, Inc. Sponsored ADR Class A (09991, BZUN.US) clearly shows that Baozun, Inc. Sponsored ADR Class A, which is in the midst of a strategic transformation, is undergoing a comprehensive upgrade. Currently, Baozun's highly potential brand management business, combined with its e-commerce foundation, is working together to push the group's key financial indicators upwards. In particular, Baozun's profit indicators show a significant improvement trend, with operating losses optimised to 10.8 million yuan in the third quarter under non-GAAP, a significant improvement compared to the same period last year. Considering that this achievement was made during the traditional off-season for e-commerce in the third quarter, the new changes in the fundamentals of Baozun, Inc. Sponsored ADR Class A will undoubtedly be more inspiring to the market. According to GMTEight, in the third quarter, both the revenue and profits of Baozun's e-commerce and brand management businesses have shown positive growth, indicating that its strategic transformation is entering a period of harvest. Data shows that during Q3, the revenue of Baozun's e-commerce business increased by 2% year-on-year to 1.8 billion yuan, and the operating profit under non-GAAP reached 28 million yuan, marking the first time in recent years that this business achieved profitability in the off-season of the third quarter. Meanwhile, on the basis of a 20% year-on-year increase in revenue for the brand management business to 400 million yuan, the adjusted operating loss also narrowed to 39 million yuan, a significant 30% reduction from the same period last year. With a total revenue increase of 5% to 2.2 billion yuan, Baozun, Inc. Sponsored ADR Class A is getting closer to its profit goal. With a positive outlook, what exactly has Baozun, Inc. Sponsored ADR Class A done right? Emerging from the transformation challenge, a clearer path to profitability This year marks the closing year of Baozun, Inc. Sponsored ADR Class A's strategic transformation. Looking back at the reform actions that Baozun has taken to address macroeconomic and industry changes, a stronger sense is emerging that as the company emerges from the depths of transformation, the profitability paths of its two core businesses are becoming clearer. Starting with the e-commerce business, in the third quarter, Baozun's profitability in this business showed clear signs of accelerated improvement. For example, the gross profit margin of the e-commerce business continued its growth from the previous quarter, reaching 13.1% this quarter, an increase of 3 percentage points year-on-year. Breaking down the operational actions, this achievement is likely due to Baozun's continuous optimization of its category matrix, actively increasing the proportion of high-margin categories and strengthening procurement and inventory turnover efficiency, effectively driving profitability levels up. In the third quarter, beauty, liquor, and clothing categories in the distribution business all achieved healthy growth; the orderly development of non-standard categories, led by clothing, not only indicates that Baozun's distribution business capabilities are continuously expanding, but also opens up new space for profit growth due to their higher margins. Additionally, the inventory turnover days in the third quarter improved by nearly 20% year-on-year, confirming the immediate effect of Baozun's strengthened procurement and inventory turnover management measures. The improvement in profitability in the distribution business is not an isolated event. In fact, in the third quarter, the revenue structure and quality of Baozun's entire e-commerce business have significantly improved. It is under the combined effect of these multiple positive factors that the profit potential of the e-commerce business is being effectively unleashed. Data shows that revenue generated by the e-commerce service business increased by 6% year-on-year to 1.4 billion yuan in the third quarter. Among them, due to the strong growth of various sub-categories in apparel, the entire large apparel category has sparked strong growth momentum, leading to a 16% increase in store operation revenue; at the same time, digital marketing and technology solutions revenue also increased by 6% year-on-year. While the e-commerce business has made good progress, Baozun has also achieved interim results in its brand management business, which can also be seen as evidence of its emergence from the transformation challenge and its evolution towards more visible and sustainable development stages. As mentioned earlier, the revenue of Baozun's brand management business continued to show rapid year-on-year growth in the third quarter, with gross profit and gross profit margin optimised to 223 million yuan and 56.6%, respectively, and the adjusted operating loss significantly narrowed. Behind the comprehensive optimization of the financial data of the brand management business is the best proof that Baozun's localization transformation of the GAP brand has been market-tested. Furthermore, in the third quarter, key operational indicators such as same-store sales, customer traffic, and average transaction value have been further optimised. Same-store sales increased by 7% year-on-year, indicating that Baozun's brand management business is undergoing a comprehensive evolution, and its path to profitability may only be a matter of time. With the two core businesses forming a synergistic force, growth visibility is on the rise This year, Baozun, Inc. Sponsored ADR Class A officially celebrated its "coming of age." In its prime, Baozun, with financial results showing increasing "value", has been sending out new signals of value to the market. By connecting these clues, the capital market may also see a high growth visibility and stronger certainty in Baozun, Inc. Sponsored ADR Class A. One of the powerful evidence of the strengthening of Baozun, Inc. Sponsored ADR Class A is that its sphere of capability has further expanded. In terms of its basic e-commerce business, Baozun has rapidly increased its "voice" in emerging channels such as RED and Douyin. For example, in the third quarter, Baozun, Inc. Sponsored ADR Class A was awarded the "2025 E-commerce Operation Service Provider" certification by RED. In the same quarter, Baozun also helped a top international consumer electronics brand open an official flagship store on Douyin, with over 3 million new fans in the first month and topping the GMV ranking in its category, demonstrating Baozun's expertise in operations. In traditional strong channels like Tmall and JD.com, Inc. Sponsored ADR Class A, Baozun is also adept. In the third quarter, Baozun unsurprisingly won all eight certifications in the Tmall ecosystem; during the same period, the company was also rated as a four-star JD.com, Inc. Sponsored ADR Class A certified company in the second half of 2025, and won three major awards in the "JD.com, Inc. Sponsored ADR Class A Flagship Digital Case Competition", becoming one of the rare service providers in the JD.com, Inc. Sponsored ADR Class A ecosystem with advanced certifications and practical awards. In the process of exploring the business path of brand management over the years, Baozun has successfully accumulated and developed its methodology with its own characteristics. In order to deepen the localization narrative of the GAP brand, Baozun announced the appointment of Cheng Yi as the first brand ambassador for GAP China in September, and also launched the brand's autumn marketing theme "Mind the Gap, Bridge the Gap", reaching out to young consumers through a series of operational actions. Also, throughout the autumn, GAP introduced the "THE GAP CLUB" autumn capsule collection, translating the brand's philosophy through "local design"; in conjunction with the launch of strong product cycles, GAP also adjusted and innovated its marketing model in the third quarter, accumulating exposure of 1.27 billion and interactive volume of 9.05 million, with nearly 200,000 new fans added to the brand's social media accounts, and a 25% increase in the young consumer group. As a result, during the recent Singles' Day promotion period, core categories such as men's clothing, women's clothing, and children's clothing in the GAP brand all saw significant improvements in the Tmall brand category rankings. Offline performance is also commendable. In the third quarter, GAP opened 11 new stores, covering cities such as Guangzhou and Yinchuan, while proactively closing 4 low-efficiency stores and upgrading the image of existing stores in multiple locations. By the end of the quarter, the total number of GAP stores in China reached 163. Based on calculations, the total scale of Baozun's brand management business offline stores has reached 171. In addition to GAP, in the third quarter, the Hunter brand opened a new store in the Qingdao Wanda Plaza, bringing the total number of stores to eight. With both core businesses showing positive development momentum and considering the latest third-quarter report, it can be said that Baozun's two businesses are forming a synergistic force and driving each other towards a new stage of development. Moving forward, as the profitability paths of the two core businesses become clearer and the visibility of profitability increases, Baozun, at its peak, can expect a high-quality growth in the future.