Why Baozun, Inc. Stock Soared Today

What happened

Shares of Baozun Inc. (ADR) (NASDAQ: BZUN) were up 17.8% as of 1:12 p.m. EDT Thursday after the Chinese e-commerce solutions company delivered better-than-expected first-quarter 2018 results.

Baozun's quarterly revenue climbed 14.5% year over year to 921.2 million yuan ($146.9 million) -- well above Baozun's latest guidance for revenue of between $136.3 million and $141 million. That translated to adjusted net income attributable to Baozun shareholders of 31.9 million yuan ($5.1 million), or 0.57 yuan ($0.09) per share, beating consensus estimates by $0.01 per share.

So what

Baozun's top line included a 50.3% increase in services revenue to $73.5 million, which was partially offset by a 7.6% decline in product sales revenue to $73.3 million. Baozun notes that the latter was primarily driven by the transition of a single electronics brand partner's business from a distribution model to a consignment model last September.

Chairman and CEO Vincent Qiu called it an "outstanding quarter" that highlighted the growth of Baozun's online stores.

"We are firmly focused on becoming the leading brand e-commerce business partner and technology development and solutions services provider," Qiu added. "We plan to continue investing in innovation to further strengthen our industry leading position and create greater value for shareholders."

Now what

For the second quarter, Baozun anticipates revenue of between 1.06 billion yuan ($166.4 million) to 1.10 billion yuan ($172.7 million) -- again well above most investors' models for second-quarter sales of $164.9 million.

In the end, this was a straightforward quarterly beat followed by an encouraging outlook, and it should be hardly surprising to see Baozun stock hitting a fresh 52-week high in response.

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Steve Symington has no position in any of the stocks mentioned. The Motley Fool owns shares of Baozun. The Motley Fool has a disclosure policy.