On the evening of August 28, Baozun (09991) released its second quarter 2025 financial results, delivering a "high-score" report card that deeply validates the significant achievements of the company's refined operations in its e-commerce business segment while demonstrating the continued high-growth momentum of its brand management business. The latest financial report reveals strong value signals for Baozun.

In the second quarter, with total revenue increasing 7% year-over-year to 2.6 billion RMB, Baozun's adjusted operating profit reached 59 million RMB, representing a substantial 489% increase compared to the same period last year, indicating a successful leap in the company's profitability. Against the backdrop of a somewhat pressured retail market environment and diminishing innovation dividends from platform economy models, Baozun not only maintained moderate revenue growth but also achieved a "qualitative change" in profitability. This likely represents more than simple financial growth—it signals further transformation and strengthening of the company's growth logic under its dual-wheel strategy.

**Financial Results Reveal "Qualitative Change" from Dual-Wheel Strategy**

Baozun's strong growth momentum in the second quarter is closely linked to its continued deepening of the dual-wheel strategy focusing on e-commerce and brand management as two core businesses. The financial report shows that Baozun's e-commerce business achieved revenue of 2.2 billion RMB in Q2, up 3% year-over-year, while brand management business generated revenue of 400 million RMB, up 35% year-over-year. The simultaneous scale expansion demonstrates effective synergy between business segments, with the dual-wheel strategy showing remarkable results.

Looking at the breakdown, both Baozun's e-commerce distribution and service businesses achieved significant growth during the reporting period. E-commerce distribution business generated revenue of 600 million RMB, up 3% year-over-year, with cosmetics and alcohol categories serving as important growth drivers through outstanding performance. Meanwhile, the company's e-commerce service business achieved revenue of 1.6 billion RMB, up 3% year-over-year. Breaking it down further, online store operations and digital marketing & IT solutions services increased 8% and 12% respectively year-over-year. By category, sports, luxury goods, and other apparel categories grew 11%, 5%, and 18% respectively.

In Q2, Baozun's omnichannel strategy advanced significantly, reflected in the proportion of multi-channel operating brand partners reaching a record high of 48.5%. By platform, while maintaining steady development on core platform Tmall, Baozun achieved double-digit revenue growth on JD, continued actively building momentum on Douyin, and saw triple-digit growth on Xiaohongshu. Overall, Baozun's omnichannel penetration rate steadily increased during the period, with breakthrough growth performance in emerging channels particularly noteworthy.

Compared to scale changes, the optimization of Baozun's e-commerce segment profitability indicators in Q2 perhaps better demonstrates the remarkable achievements brought by the company's refined operational measures. During the period, benefiting from Baozun's proactive combination of distribution model upgrades, expansion in advantageous categories, deepening of omnichannel operating systems, and technology-driven operational efficiency improvements, the company's e-commerce segment adjusted operating profit increased substantially by 56% year-over-year to 94 million RMB, showing that precise operational adjustments and optimizations further unleashed Baozun's e-commerce business profit potential.

Also in Q2, driven strongly by the Gap and Hunter dual brands, Baozun's brand management business continued to deliver on growth expectations. For the Gap brand, 11 new stores were added during the period, bringing the total to 156 stores. Regionally, Q2 saw Gap steadily advancing penetration in new first-tier and second-tier cities like Ningbo and Foshan, while successfully entering emerging regions like Kashgar. For the Hunter brand, three stores opened simultaneously in May—the Shanghai Zhang Garden flagship store, Hangzhou MixC store, and Beijing Sanlitun store—all achieving single-store profitability targets in their first operating quarter, demonstrating stellar opening performance.

Furthermore, Hunter expanded into mountaineering, outdoor activities, and bag product lines during the period, driving up the proportion of non-footwear sales. Regarding segment profitability changes, through lean operational efficiency measures, the brand management segment showed significant optimization in key indicators including inventory turnover efficiency, gross profit margin, and single-store efficiency. The business's Non-GAAP operating loss narrowed 30% year-over-year to 35 million RMB during the period, with the profit improvement trend continuing.

**Reassessing Baozun's Reinforced Growth Logic**

Baozun's latest financial report can be viewed as a "future-oriented" scorecard. Based on the Q2 results, Baozun not only demonstrates strong current growth momentum but also shows that the company's endogenous growth logic continues to strengthen, making future growth sustainability highly anticipated.

Starting with the e-commerce segment, while the current retail market environment poses considerable challenges for both brands and e-commerce service providers, under continuous pressure testing, Baozun has maintained sustainable development pace in its distribution model through deepened channel development, precise marketing strategy implementation, and data-driven procurement and inventory management systems. This is evidenced by Q2 distribution business not only achieving scale growth but also seeing distribution gross margin increase against the trend by 1.1 percentage points to 12.8%.

More commendably, Baozun isn't simply focused on "maintaining status quo" in e-commerce business; rather, the company is actively seizing new growth opportunities. For instance, in emerging channels, as one of Xiaohongshu's first batch of "Red Partner certified service providers," Baozun partnered with over 20 outdoor, sports, and luxury brands in the first half of the year, winning Xiaohongshu's annual content marketing innovation award while receiving comprehensive platform certification in ecosystem data, content creation, precision advertising, and commercial conversion.

For the well-performing brand management business, Baozun's strategy is exceptionally clear. According to reports, Gap brand will continue focusing on core business districts in new first-tier and second-tier cities in the second half, planning to add approximately 40 new stores for the full year. Simultaneously, Baozun will continue increasing marketing resource investment in Gap brand in the second half, providing strong support for sustainable business growth through deepened brand influence building. For Hunter, Baozun will also actively expand offline presence based on market conditions while continuing to stimulate growth through category expansion.

Overall, Baozun's latest financial report confirms the company's current good operating condition while releasing expectations for continued growth. Currently, as Baozun's endogenous growth logic continues strengthening, there's reason to believe the company's moderate revenue growth and breakthrough profitability improvement trends can be sustained. Investors in capital markets may not have fully recognized this, and this expectation gap could potentially become a catalyst for Baozun's value re-rating at some point in the future.