Baozun Inc (NASDAQ: BZUN) reported a fiscal second-quarter 2024 revenue growth of 3.1% year-on-year to 2.39 billion Chinese yuan ($329.0 million), beating the analyst consensus estimate of $325.0 million.

The brand e-commerce solution provider’s adjusted loss per ADS was $0.01, compared to the analyst consensus earnings estimate of $0.06.

The increase in total net revenues was mainly due to a 9.4% growth in service revenue. The stock price gained after the results.

By the end of the quarter, approximately 45.8% of the BEC segment’s brand partners engaged with it for store operations in at least two channels.

Segments: Product sales revenue decreased by 6.4% Y/Y to $119.8 million. Services revenue increased 9.4% Y/Y to $209.3 million.

The adjusted operating margin was 0.40% versus 0.03% a year ago. The company held $392.6 million in cash and equivalents as of June-end.

Chair and CEO Vincent Qiu: “I’m pleased that in the second quarter, E-Commerce revenue returned to growth after ten quarters of contraction, highlighting our effective revitalization efforts in both services and product sales… Brand Management continued to reduce its operating losses and accelerated its store expansion plans. We have also been working more closely with Gap Inc to maximize its global assets in the Chinese market.” 

Baozun stock plunged over 45% in the last 12 months as the company battled a weak domestic economy and cutthroat e-commerce competition.

Price Action: BZUN stock traded higher by 4.39% at $2.38 premarket at the last check Wednesday.