Why Is Baozun Stock Trading Lower Today?
Portfolio Pulse from Anusuya Lahiri
Baozun Inc (NASDAQ: BZUN) reported Q4 fiscal 2023 revenue of $391.6 million, up 8.9% Y/Y, beating consensus of $382.2 million but missed EPS estimates with $0.07 vs. $0.16 expected. The stock dropped 8.33% in premarket trading. Revenue growth was driven by its new Baozun Brand Management line. Product sales revenue increased by 36.3%, while services revenue decreased by 3.0%. The adjusted operating margin fell to 2.7% from 7.2% a year ago. Baozun's stock has lost 50% of its value over the past year. Baozun is also part of the Invesco Golden Dragon China ETF (NASDAQ: PGJ).
March 21, 2024 | 1:27 pm
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NEGATIVE IMPACT
Baozun Inc reported higher Q4 revenue but missed EPS estimates, leading to an 8.33% premarket stock price drop.
Missing EPS estimates despite beating revenue forecasts typically leads to negative investor sentiment in the short term, causing stock prices to drop.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
Invesco Golden Dragon China ETF, which includes Baozun Inc, may see indirect impact due to Baozun's stock performance.
As Baozun is part of the PGJ ETF, its stock performance, especially significant movements, can indirectly affect the ETF's value.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50