Ruhnn Holding Ltd. (Nasdaq: RUHN) reported strong financials for the fiscal first quarter, but its stock fell more than 11 percent to $4.47 per American depositary share on pure investor sentiment.
The Hangzhou-based company, an online key opinion leader (KOL) promoter, reported in a statement today that its revenue in the three months through June reached $45.6 million, up 34 percent year-over-year.
Net loss dropped 40 percent from a year ago to $3.9 million, or 5 cents per share, Ruhnn said.
The company said it had 133 KOLs signed on the platform as of June 30, compared with 93 KOLs a year ago. The number of brands it cooperates with rose to 701 from 297 year-over-year.
Min Feng, the founder and chairman of Ruhnn, called the growth in the first quarter “robust,” also noting the “successful” completion of its milestone. Ruhnn became publicly traded in April on the Nasdaq, raising $125 million for 10 million American depositary shares sold at $12.50 apiece.
“We believe our successful listing on a U.S. stock exchange is creating a solid foundation for the Company’s long-term sustainable business development in the years to come,” Feng said.
The chairman noted that Ruhnn continues to benefit from its partnership with Alibaba Group Holding Ltd. (NYSE: BABA). The KOL platform receives “e-commerce infrastructure and technology tools that support the internet KOL ecosystem” from Alibaba, Feng said.
Ruhnn’s chief financial officer, Zhenbo Chi, added, “For the remainder of fiscal year 2020, we expect to maintain this growth momentum in both the full-service business and the platform business.”
The company said that for the full fiscal year 2020, it expects net revenues from product sales through the full-service model to be between 980 million and 1,130 million yuan, and net revenues from services through the platform model to be between 280 million and 380 million yuan, representing a year-over-year growth of between 4 and 20 percent, and between 86 and 152 percent, respectively.