Aug 27, 2026 earnings call — Raised long-term non-GAAP profit target
Company raised its 2028 non-GAAP operating profit target from RMB 550 million to RMB 700 million.
Revenue $0.4B (est $0.4B) · EPS $0.06 (est $1.68)
Key quotes
"We recently began piloting AI and automation initiatives within our Gap e-commerce operations to streamline selected processes."
"BBM sustained its strong momentum into the second quarter with revenue growing 22% year-over-year and the non-GAAP operating loss further narrowing despite increased investment in emerging brands."
"During the second quarter, BEC's revenue grew by 5% year-over-year and non-GAAP operating income reached RMB 107 million, the highest second quarter level since 2022."
Analyst Q&A 6
Why raise 2028 profit forecast
Q (Alicis a Yap · Citi): Analyst asked why management raised the 2028 non-GAAP operating income target and what top-line growth supports it. They also asked if brand partners cut budgets and whether brands using AI tools grow faster than others.
A: Management said they see a stronger trend at BBM and many AI and infrastructure experiments show promising results. They expect AI and automation applied at scale across their BEC client base will unlock large potential. They have not seen major budget cuts by brand partners; brands are shifting spend toward content and live streams and AI is used mainly to improve efficiency rather than directly boost sales now.
"Secondly, recently, we did a lot of experiments and pioneer for the AI tools and also along with other infrastructural tools we developed along these years, and we see quite exciting results." — Wenbin Qiu (CEO·CHAIR)
Nike channel changes and Hunter outlook
Q (Zhuoming Cao · Huatai): Analyst asked if Baozun saw channel shifts at Nike and how they will capture opportunities. They also asked about Hunter's rising attention on social media and any outlook detail.
A: Management declined to comment on any specific brand but said Baozun is a long-standing DTC partner and is a top choice when brands refocus on DTC. For Hunter, they are investing in emerging brands, opening more premium mall stores, expanding apparel (apparel exceeded 30% in some stores), doing collaborations, and exploring other category and IP opportunities to build brand equity and profit.
"For Hunter, yes, we -- as we mentioned, we are continuing investing in our emerging brands, especially this year." — Ken Huang (CFO)
Opportunities from brands selling China units
Q (Ye Tao · CMB International): Analyst asked whether more international brands exploring divestments creates a meaningful pipeline for BBM and whether Baozun will pursue such deals. They also asked what competitive advantages Baozun has.
A: Management said they are seeing more opportunities and are actively talking with both portfolio and non-portfolio brands. They listed four confidence factors: AI efforts, strong synergy between BEC and BBM, BBM organic growth (Gap, Hunter, Sweaty Betty), and potential new BBM opportunities. They said priority remains improving existing BBM brands, and new deals would be additional upside but are not yet counted in guidance.
"We are talking to different brands, but our priority is to make the existing BBM brands better." — Wenbin Qiu (CEO·CHAIR)
AI effect on competitive edge
Q (Jiawei Yin · Citics): Analyst asked if Baozun's differentiation versus other e-commerce agency providers is widening or narrowing as many build their own AI SaaS, and how AI affects industry concentration.
A: Management said technology has been central since Baozun was founded and they have invested heavily in IT and talent over 19 years. They believe Baozun is taking a leadership position among competitors in the AI era and will leverage AI to increase operational efficiency and support top-line growth. They expect to widen the gap with competitors by focusing on AI, data, automation, and consumer behavior scenarios.
"So under the AI age, so I'll be very proud to say that Baozun is definitely taking the leadership among all other competitors during that sector." — Junhua Wu
BBM same-store growth and full-year guide
Q (Thomas Chong · Jefferies): Analyst asked how to think about BBM same-store growth into Q3 given a high base last year and requested an update on annual BBM top-line growth guidance of 15%–20%.
A: Management said Gap and BBM delivered strong same-store growth in the 20s in Q2 and quarter-to-date Q3 trends look even stronger. They credited better merchandising, marketing (brand ambassador campaigns and collaborations), and store expansion (50+ new stores planned) for the momentum. They now expect BBM full-year growth of 20% to 25%.
"For the full year, we believe we will achieve a 20% to 25% increase." — Ken Huang (CFO)
Platform and category sales trends
Q (Jiawei Yin · Citics): Analyst asked whether Baozun sees changes in sales trends across platforms and categories given subdued July consumption data from NBS.
A: Management said they have not seen a big change across platforms. They view shelf-based e-commerce as stable and expect a strong finish into Double 11, while live-stream platforms like Douyin continue to grow. On categories, they see strong growth in premium luxury, sports and outdoor, fashion, and health and caring.
"So we haven't seen a big change in sales trends among different kind of platforms." — Junhua Wu