Goodbaby’s first quarter revenue rose by 6.4%, though it fell on a constant currency basis as the company faced tariff hits in the U.S. and slumping demand in China
image credit: Bamboo Works
Key Takeaways:
- Goodbaby’s revenue grew 6.4% in the first quarter, but the figure dropped by 0.9% on a constant currency basis
- The company’s high-end Cybex stroller brand has helped it ride out U.S. tariff wars, reporting 12.9% year-on-year revenue growth during the quarter
The rollercoaster ride of rising and falling U.S. tariffs last year, and resulting gyrations in Chinese imports to the country, is reflected in the latest quarterly results of Goodbaby International Holdings Ltd. (1086.HK), whose strollers and other baby products were affected by the trade war. But even as its exports to the U.S. plunged by as much as 30%, China still posted a record $1.2 trillion trade surplus last year as its exporters turned to other global markets.
That pivot is also reflected in Goodbaby’s results, as the company navigates choppy trade waters using a localization strategy involving earlier acquisitions in the U.S. and Europe. Even so, Goodbaby’s U.S. sales took a clear tariff hit in the first quarter, though its European sales are holding up better.
Goodbaby’s founder and President Song Zhenghuan, a former teacher, is known as China’s “stroller king” for turning a factory under the Lujia Middle School, located in the city of Kunshan near Shanghai, into the world’s largest stroller maker. The company currently sells to 110 countries, giving it roughly one-third of the global market.
But that market has hardly been an easy stroll lately.
Goodbaby reported its revenue grew by 6.4% year-on-year to HK$2.17 billion ($276.5 million) in the first quarter, marking a return to growth after a 1.2% decrease for all of last year. But on a constant currency basis, which better reflects actual sales without including foreign exchange rate fluctuations, Goodbaby’s revenue declined by 0.9% in the first quarter, improving from a 3% decline in 2025.
Goodbaby doesn’t report profit figures in its first-quarter reports, which are voluntary under Hong Kong listing rules. But its net profit fell 38.7% last year to HK$218.4 million, as its gross margin remained basically flat.
The latest results show Goodbaby’s sales …