SHANGHAI, Aug. 27, 2026 /PRNewswire/ -- Baozun Inc. (Nasdaq: BZUN and HKEX: 9991) ("Baozun", the "Company" or the "Group"), a leading brand e-commerce solution provider and digital commerce enabler in China, today announced its unaudited financial results for the second quarter ended June 30, 2026.

Mr. Vincent Qiu, Chairman and Chief Executive Officer of Baozun, commented, "We delivered another solid second quarter, with total revenue growing 7% year-over-year and earnings quality continuing to improve with record operating profits in recent years for the second quarter, amid soft consumer sentiment. BEC delivered resilient growth while further strengthening efficiency and profitability. BBM sustained strong brand momentum, led by continued strength at GAP. In addition, we are also encouraged by the early results from our technology innovation and AI-powered automation pilots, which we expect to accelerate across the Group to enhance productivity, streamline operations, and drive further efficiency gains. With both divisions performing well and synergies deepening, we are confident in our ability to create a powerful platform for mutual growth and a more profitable operating model."

Ms. Catherine Zhu, Chief Financial Officer of Baozun Inc., commented, "Our second-quarter results reflect balanced growth across both divisions, with E-Commerce revenue up 5% and Brand Management revenue up 22% year-over-year. Non-GAAP operating income improved to RMB74 million, driven by continued profitability improvement at BEC and a further narrowing of BBM's operating loss. Blended gross margin for product sales expanded by 499 basis points year-over-year, while inventory days improved to 112 days from 134 days a year ago, demonstrating our ongoing effectiveness and discipline in inventory turnover management. With strong business momentum and healthy operating efficiency, we remain confident in sustaining this trajectory of high-quality and profitable growth."

Second Quarter 2026 Financial Highlights

   -- Total net revenues were RMB2,743.0 million (US$[1]404.3 million), 
      representing an increase of 7.5% compared with RMB2,552.7 million in the 
      same quarter of last year. 
 
   -- Income from operations was RMB63.4 million (US$9.3 million), compared 
      with loss from operations of RMB9.4 million in the same quarter of last 
      year. Operating margin was 2.3%, compared with negative 0.4% for the same 
      period of 2025. 
 
   -- Non-GAAP income from operations[2] was RMB74.3 million (US$10.9 million), 
      significantly improved compared with RMB6.1 million in the same quarter 
      of last year. Non-GAAP operating margin was 2.7%, compared with 0.2% for 
      the same period of 2025. 
 
          -- Adjusted operating profit of E-Commerce[3] was RMB107.1 million 
             (US$15.8 million), compared with RMB41.1 million for the same 
             period of 2025. 
 
          -- Adjusted operating loss of Brand Management[3] was RMB33.0 million 
             (US$4.9 million), compared with RMB35.0 million for the same 
             period of 2025. 
 
   -- Net income attributable to ordinary shareholders of Baozun was RMB17.0 
      million (US$2.5 million), compared with net loss attributable to ordinary 
      shareholders of Baozun of RMB34.0 million for the same period of 2025. 
 
   -- Non-GAAP net income attributable to ordinary shareholders of Baozun[4] 
      was RMB24.8 million (US$3.7 million), compared with non-GAAP net loss 
      attributable to ordinary shareholders of Baozun of RMB18.0 million for 
      the same period of 2025. 
 
   -- Basic and diluted net income attributable to ordinary shareholders of 
      Baozun per American Depositary Share ("ADS[5]") were both RMB0.29 
      (US$0.04), compared with basic and diluted net loss attributable to 
      ordinary shareholders of Baozun per American Depositary Share of RMB0.59 
      for the same period of 2025. 
 
   -- Diluted non-GAAP net income attributable to ordinary shareholders of 
      Baozun per ADS[6] was RMB0.42 (US$0.06), compared with diluted non-GAAP 
      net loss attributable to ordinary shareholders of Baozun per ADS RMB0.31 
      for the same period of 2025. 

Reconciliations of GAAP measures to non-GAAP measures presented above are included at the end of this results announcement.

Adjusted operating profits (losses) are included in the Segments data of Segment Information.

 
([1]) This announcement contains translations of certain Renminbi (RMB) 
amounts into U.S. dollars (US$) at a specified rate solely for the convenience 
of the reader. Unless otherwise noted, the translation of RMB into US$ has 
been made at RMB6.7851 to US$1.00, the noon buying rate in effect on June 30, 
2026 as set forth in the H.10 Statistical Release of the Federal Reserve 
Board. 
([2]) Non-GAAP income (loss) from operations is a non-GAAP financial measure, 
which is defined as income (loss) from operations excluding the impact of 
share-based compensation expenses, amortization of intangible assets resulting 
from business acquisition, impairment of goodwill and cancellation fees of 
repurchased ADSs. 
([3]) The Group operates through two segments: (i) E-Commerce; (ii) Brand 
Management. For more information, please refer to Supplemental Information. 
([4]) Non-GAAP net income (loss) attributable to ordinary shareholders of 
Baozun is a non-GAAP financial measure, which is defined as net income (loss) 
attributable to ordinary shareholders of Baozun excluding the impact of 
share-based compensation expenses, amortization of intangible assets resulting 
from business acquisition, impairment of goodwill and investments, 
other-than-temporary impairment of equity method investments, cancellation 
fees of repurchased ADSs, fair value gain on derivative liabilities, gain on 
disposal/acquisition of subsidiaries, and unrealized investment loss (gain). 
([5]) Each ADS represents three Class A ordinary shares. 
([6]) Diluted non-GAAP net income (loss) attributable to ordinary shareholders 
of Baozun per ADS are non-GAAP financial measures, which is defined as 
non-GAAP net income (loss) attributable to ordinary shareholders of Baozun 
divided by weighted average number of shares used in calculating diluted net 
income (loss) per ordinary share multiplied by three. 
 

Business Highlights

Baozun e-Commerce, or "BEC"

BEC encompasses our China e-commerce businesses, including brand store operations, customer services, and value-added services covering warehousing and fulfillment, IT and digital marketing. During the second quarter of 2026, total revenue from BEC increased by 4.6% year-over-year, mainly driven by resilient growth in service fee model. BEC's services revenue grew by 10.0% to RMB1,761.8 million, mainly driven by revenue growth in Digital Marketing and IT solutions.

Baozun Brand Management, or "BBM"

BBM provides holistic brand management, encompassing strategic and tactical positioning, branding and marketing, retail and e-commerce operations, supply chain and logistics, and technology enablement. We aim to leverage our portfolio of technologies to build longer and deeper relationships with brands. During the second quarter of 2026, total revenue from BBM increased by 21.9% year-over-year to RMB485.6 million. We have 184 offline stores under our management at the end of the second quarter of 2026.

Second Quarter 2026 Financial Results

Total net revenues were RMB2,743.0 million (US$404.3 million), an increase of 7.5% from RMB2,552.7 million in the same quarter of last year. The increase in total net revenues was driven by revenue growth in both the Company's BEC and BBM business lines.

Total product sales revenue was RMB1,025.6 million (US$151.1 million), an increase of 3.2% compared with RMB994.1 million in the same quarter of last year, of which,

   --  Product sales revenue of E-Commerce was RMB540.8 million (US$79.7 
      million), a decrease of 9.6% compared with RMB598.6 million in the same 
      quarter of last year. The decrease was primarily attributable to the 
      categories of Home & Furnishing and Cosmetics sectors. 
 
   -- Product sales revenue of Brand Management was RMB485.3 million (US$71.5 
      million), an increase of 22.6% from RMB396.0 million in the same quarter 
      of last year. The increase was primarily driven by higher sales from the 
      Gap brand, as the Company continued to optimize merchandising plans, 
      channels and marketing initiatives. 

Services revenue was RMB1,717.4 million (US$253.1 million), an increase of 10.2% from RMB1,558.6 million in the same quarter of last year. The increase was primarily attributable to double-digit revenue growth in digital marketing and IT solutions.

Total operating expenses were RMB2,679.6 million (US$394.9 million), compared with RMB2,562.0 million in the same quarter of last year.

   -- Cost of products was RMB682.8 million (US$100.6 million), compared with 
      RMB711.5 million in the same quarter of last year. The decrease was 
      primarily attributable to lower sales volume within the BEC business, 
      combined with cost reductions driven by efficiency--improvement 
      initiatives. 
 
   -- Fulfillment expenses were RMB549.5 million (US$81.0 million), compared 
      with RMB606.0 million in the same quarter of last year. The decrease was 
      primarily due to a decline in E-commerce warehouse and logistics revenue, 
      along with the Company's cost control initiatives and efficiency 
      improvements. 
 
   -- Sales and marketing expenses were RMB1,177.2 million (US$173.5 million), 
      compared with RMB937.8 million in the same quarter of last year. The 
      increase was mainly due to higher revenue contributions from digital 
      marketing services for BEC, as well as increased expenses associated with 
      the expansion of offline stores and marketing activities for BBM during 
      the quarter. 
 
   -- Technology and content expenses were RMB114.2 million (US$16.8 million),