Why Baozun Stock Was Sliding Today

Shares of Baozun (NASDAQ: BZUN) were pulling back today after the Chinese e-commerce services provider offered disappointing guidance in its second-quarter earnings report. Despite strong results, the outlook for the current quarter was dim enough to drive investors away, and the stock was down 7.5% as of 10:28 a.m. EDT on Friday.

For the second quarter, Baozun's revenue rose 26.3% to $304.6 million, ahead of analyst estimates at $299.1 million. Higher-margin services revenue increased 43.2% to $173.3 million and now makes up a majority of the company's revenue. Gross merchandise volume rose 31.2% to $1.8 billion.

Image source: Baozun.

Continue reading

Source Fool.com