Baozun Group (NASDAQ: NASDAQ: BZUN ) has reported a 5% year-over-year (YoY) revenue increase in the first quarter of 2024, reaching RMB 2 billion. The growth was primarily driven by a significant 66% surge in revenue from the Brand Management segment and solid performance in the E-Commerce segment. The company's operating cash flow saw an improvement of RMB 129 million, and for the first time since 2019, the e-commerce segment's operating cash flow turned positive.
Baozun also initiated a US$20 million share repurchase program, signaling confidence in its financial stability and future prospects. Key Takeaways Baozun's Q1 2024 revenues increased by 5% YoY to RMB 2 billion. The Brand Management segment's revenue grew by 66% YoY.
Operating cash flow improved by RMB 129 million, with e-commerce operating cash flow positive for the first time since 2019. Gross margin for product sales in e-commerce improved by 230 basis points to 13.8%.
Operating expenses rose by 7.9% YoY, mainly due to increased sales and marketing investments. The company maintains a robust balance of cash and equivalents, and short-term investments, totaling RMB 2.
9 billion. A share repurchase program of US$20 million has been initiated. Baozun won multiple service provider awards for its performance in Q1.
Company Outlook Baozun aims for double-digit growth throughout 2024. New store openings are outperforming the existing portfolio. The Hunter brand is showing strong sales and operating results.
Bearish High.
