Despite achieving a 53.7% gross margin in 2025Q4, the company continues to struggle with bottom-line profitability as SG&A expenses frequently track closely with gross profit, resulting in a net loss of $38.0 million.
| Metric | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 |
|---|
| Sales/Revenue | 9.95B | 9.42B | 8.81B | 8.4B | 9.4B | 8.85B | 7.28B | 5.39B | 4.15B | 3.39B | 2.6B | 1.58B | 1.52B | 954.46M |
| Revenue Growth % | 5.55% | 6.92% | 4.9% | -10.6% | 6.15% | 21.62% | 34.96% | 29.99% | 22.37% | 30.47% | 64% | 4.11% | 59.44% | - |
| Cost of Goods Sold | 4.89B | 4.94B | 4.92B | 4.98B | 5.94B | 5.59B | 4.45B | 3.3B | 2.74B | 2.46B | 2.06B | 1.25B | 1.36B | 880.09M |
| COGS % of Revenue | 49.13% | 52.38% | 55.79% | 59.23% | 63.19% | 63.1% | 61.18% | 61.14% | 65.94% | 72.64% | 79.32% | 79.16% | 89.51% | 92.21% |
| Gross Profit | 5.06B | 4.49B | 3.9B | 3.42B | 3.46B | 3.27B | 2.83B | 2.1B | 1.41B | 927.56M | 537.46M | 330.16M | 159.57M | 74.38M |
| Gross Margin % | 50.87% | 47.62% | 44.21% | 40.77% | 36.81% | 36.9% | 38.82% | 38.86% | 34.06% | 27.36% | 20.68% | 20.84% | 10.49% | 7.79% |
| Gross Profit Growth % | 12.77% | 15.18% | 13.74% | -0.97% | 5.89% | 15.59% | 34.82% | 48.31% | 52.35% | 72.58% | 62.79% | 106.9% | 114.55% | - |
| Operating Expenses | 4.98B | 4.6B | 4.1B | 3.38B | 3.45B | 2.71B | 2.44B | 1.74B | 1.16B | 837.5M | 529.01M | 387.01M | 200.56M | 118.77M |
| OpEx % of Revenue | 50.12% | 48.84% | 46.55% | 40.22% | 36.73% | 30.59% | 33.55% | 32.27% | 27.88% | 24.7% | 20.36% | 24.43% | 13.18% | 12.44% |
| Selling, General & Admin | 4.6B | 4.1B | 3.68B | 3.05B | 3.08B | 2.35B | 2.03B | 1.49B | 1.03B | 747.09M | 477.2M | 387.47M | 200.48M | 118.65M |
| SG&A % of Revenue | 46.24% | 43.51% | 41.82% | 36.26% | 32.73% | 26.6% | 27.91% | 27.7% | 24.76% | 22.04% | 18.36% | 24.45% | 13.17% | 12.43% |
| Research & Development | 0 | 0 | 505.2M | 427.95M | 448.41M | 409.87M | -392.95M | -268.97M | -140.69M | -95.64M | -59.95M | 63.61M | 16.12M | 6.55M |
| R&D % of Revenue | - | - | 5.73% | 5.09% | 4.77% | 4.63% | -5.4% | -4.99% | -3.39% | -2.82% | -2.31% | 4.01% | 1.06% | 0.69% |
| Other Operating Expenses | 385.9M | 501.78M | -88.16M | -95.29M | -72.52M | -57.12M | 803.65M | 246.29M | 129.44M | 90.4M | 51.82M | 63.15M | 16.2M | 6.68M |
| Operating Income | 74.95M | -114.83M | -206.38M | 33.29M | 7.02M | 558.68M | 306.17M | 355.77M | 256.33M | 90.07M | 8.45M | -56.86M | -40.98M | -44.4M |
| Operating Margin % | 0.75% | -1.22% | -2.34% | 0.4% | 0.07% | 6.31% | 4.21% | 6.6% | 6.18% | 2.66% | 0.33% | -3.59% | -2.69% | -4.65% |
| Operating Income Growth % | 165.27% | 44.36% | -720% | 374.11% | -98.74% | 82.47% | -13.94% | 38.79% | 184.6% | 965.74% | 114.86% | -38.72% | 7.68% | - |
| EBITDA | 296.69M | 130.03M | 45.25M | 229.83M | 213.96M | 709.38M | 426.27M | 427.95M | 306.95M | 125.95M | 31.6M | -43.6M | -33.8M | -40.12M |
| EBITDA Margin % | 2.98% | 1.38% | 0.51% | 2.74% | 2.28% | 8.01% | 5.86% | 7.94% | 7.4% | 3.71% | 1.22% | -2.75% | -2.22% | -4.2% |
| EBITDA Growth % | 128.18% | 187.36% | -80.31% | 7.42% | -69.84% | 66.42% | -0.39% | 39.42% | 143.71% | 298.61% | 172.46% | -29.02% | 15.75% | - |
| D&A (Non-Cash Add-back) | 221.74M | 244.85M | 251.63M | 196.54M | 206.94M | 150.7M | 120.1M | 72.17M | 50.62M | 35.88M | 23.14M | 13.25M | 7.19M | 4.28M |
| EBIT | -156.19M | -54M | -175.68M | -523.39M | -97.16M | 518.59M | 409.58M | 348.78M | 268.9M | 102.25M | 26.84M | -56.35M | -36.79M | -43.96M |
| Net Interest Income | 13.98M | 29.77M | 40.77M | -11.1M | 6.1M | -24.75M | -18.7M | -5.04M | 9.1M | 11.87M | 8.83M | 1.6M | 3.9M | -3.15M |
| Interest Income | 58.56M | 68.75M | 82.11M | 45.82M | 62.94M | 41.37M | 42.61M | 8.02M | 13.35M | 11.87M | 8.83M | 3.16M | 4.57M | 122K |
| Interest Expense | 44.57M | 38.99M | 41.34M | 56.92M | 56.85M | 66.12M | 61.32M | 13.06M | 4.25M | 0 | 0 | 1.55M | 677K | 3.27M |
| Other Income/Expense | -264.62M | -2.82M | -4.39M | -617.18M | -157.72M | -4.36M | -35.39M | -20.05M | 8.31M | 12.19M | 8.15M | -1.05M | 3.52M | -2.84M |
| Pretax Income | -189.67M | -117.64M | -210.77M | -583.89M | -150.7M | 554.32M | 348.27M | 335.72M | 264.65M | 102.25M | 16.6M | -57.9M | -37.46M | -47.23M |
| Pretax Margin % | -1.91% | -1.25% | -2.39% | -6.95% | -1.6% | 6.26% | 4.79% | 6.23% | 6.38% | 3.02% | 0.64% | -3.65% | -2.46% | -4.95% |
| Income Tax | 9.91M | 20.74M | 12M | 26.48M | 55.26M | 127.79M | 71.14M | 64.95M | 54.25M | 16.83M | -6.02M | 1.91M | 307K | 0 |
| Effective Tax Rate % | -5.22% | -17.63% | -5.69% | -4.54% | -36.67% | 23.05% | 20.43% | 19.35% | 20.5% | 16.46% | -36.28% | -3.3% | -0.82% | 0% |
| Net Income | -242.1M | -185.2M | -278.42M | -653.29M | -219.83M | 425.99M | 281.3M | 269.71M | 208.87M | 86.63M | 22.62M | -59.81M | -37.77M | -47.23M |
| Net Margin % | -2.43% | -1.97% | -3.16% | -7.78% | -2.34% | 4.81% | 3.86% | 5% | 5.03% | 2.56% | 0.87% | -3.78% | -2.48% | -4.95% |
| Net Income Growth % | -30.73% | 33.48% | 57.38% | -197.18% | -151.6% | 51.44% | 4.3% | 29.13% | 141.09% | 282.98% | 137.82% | -58.36% | 20.03% | - |
| Net Income (Continuing) | -199.58M | -138.38M | -222.78M | -610.37M | -205.96M | 426.53M | 281.89M | 269.77M | 209.13M | 85.42M | 22.62M | -59.81M | -37.77M | -47.23M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 1.85B | 1.87B | 1.75B | 1.57B | 1.58B | 31.51M | 30.71M | 17.5M | 17.62M | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -4.05 | -3.09 | -4.68 | -10.68 | -3.06 | 6.69 | 4.71 | 4.50 | 3.57 | 1.59 | 0.42 | -1.23 | -0.78 | -0.96 |
| EPS Growth % | -31.07% | 33.97% | 56.18% | -249.02% | -145.74% | 42.04% | 4.67% | 26.05% | 124.53% | 278.57% | 134.15% | -57.69% | 18.75% | - |
| EPS (Basic) | -4.05 | -3.09 | -4.68 | -10.68 | -3.06 | 6.81 | 4.86 | 4.50 | 3.87 | 1.74 | 0.45 | -1.23 | -0.78 | -0.96 |
| Diluted Shares Outstanding | 57.83M | 59.83M | 59.46M | 61.03M | 72.05M | 63.6M | 59.58M | 59.72M | 58.65M | 54.59M | 53.58M | 48.56M | 48.56M | 48.56M |
| Basic Shares Outstanding | 57.83M | 59.83M | 59.43M | 61.03M | 71.77M | 62.38M | 57.92M | 59.72M | 53.98M | 49.93M | 49.92M | 48.56M | 48.56M | 48.56M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Margin compression from retail
According to recent financial disclosures, Baozun's revenue growth has remained in the low-to-mid single digits, with the most recent quarter showing a 5.9% year-over-year increase, suggesting that the company's transition toward brand management is struggling to offset the deceleration in its core e-commerce service business.
The modest revenue expansion appears to be heavily influenced by the consolidation of Gap China rather than organic growth in the core service segment. Investors should monitor whether this reliance on retail-heavy revenue streams will continue to dilute the company's historical profile as a high-growth technology enabler.
As reported in quarterly filings, Baozun has achieved a notable expansion in gross margins to 53.7% in 2025Q4, yet this improvement appears disconnected from bottom-line performance, as the company continues to struggle with persistent net losses despite the higher gross profit contribution from its evolving business model.
While the gross margin trend suggests potential pricing power or a shift toward higher-margin service offerings, the failure to translate this into operating income indicates that fulfillment and overhead costs are rising in tandem. This divergence warrants further investigation into whether the company's cost structure is becoming permanently bloated by its new retail operations.
Based on the provided income statement data, Baozun's operating leverage remains strained, as SG&A expenses frequently track closely with gross profit, preventing the company from achieving consistent operating profitability despite the scale of its $3.2 billion revenue base in the most recent quarter.
The inability to scale operating income faster than gross profit suggests that the company's infrastructure is not yet optimized for its current hybrid model. This lack of efficiency may indicate that the integration of physical retail assets is creating a drag on the company's historically leaner service-oriented cost structure.
Financial statements indicate that Baozun's net income is frequently impacted by significant share-based compensation expenses, which totaled $1.1 million in 2025Q4, further complicating the assessment of the company's underlying cash-generating potential and masking the true operational performance of its core business segments.
The recurring nature of these non-cash charges, combined with frequent net losses, suggests that reported EPS may not accurately reflect the company's economic reality. Investors should be cautious of relying on headline earnings figures until the company demonstrates a consistent ability to generate positive net income without relying on accounting adjustments.
As highlighted by the recent shift toward asset-heavy operations, the strongest challenge to the current narrative is that Baozun is trading its high-margin service moat for a low-margin retail business, a move that may permanently compress operating margins and increase exposure to inventory-related risks.
Short-term improvements in gross margin may be misleading if they are offset by the higher fixed costs and inventory write-down risks inherent in the Gap China acquisition. The market may be correctly pricing the company as a struggling retailer rather than a technology partner, given the persistent difficulty in achieving sustainable profitability.
Quick answers to the most common questions about buying BZUN stock.
For fiscal year 2025, Baozun Inc. (BZUN) reported total revenue of $9.95B. This represents a 942.0% increase compared to $954.5M in 2012.
Baozun Inc. (BZUN) reported a net loss of $242.1M for the fiscal year ending 2025.
Baozun Inc. (BZUN) reported an operating income of $75.0M, resulting in an operating profit margin of 0.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Baozun Inc. (BZUN) generated $5.06B in gross profit for the year, representing a gross profit margin of 50.9%. This demonstrates the company's core pricing power and production efficiency.