S&P 500 gains to extend record run, set for positive week
Investing.com -- MINISO Group Holding Limited (NYSE:MNSO; HKEX:9896) reported mixed first quarter results, with earnings falling short of expectations despite revenue slightly beating estimates. The company’s shares plunged 17.5% following the announcement.
The global value retailer posted adjusted earnings per ADS of RMB1.88 ($0.26) for the quarter ended March 31, missing analyst estimates of RMB2.14. Revenue grew 18.9% year-over-year to RMB4.43 billion ($610.1 million), narrowly surpassing the consensus forecast of RMB4.41 billion.
MINISO’s gross margin improved to 44.2%, up 0.8 percentage points from the same period last year. However, adjusted net profit declined to RMB587.2 million ($80.9 million) from RMB616.9 million a year ago, with adjusted net margin contracting to 13.3% from 16.6%.
The company cited increased investments in directly operated overseas stores as a key factor impacting profitability. As of March 31, MINISO operated 608 stores directly in overseas markets, nearly doubling from 327 stores a year earlier.
"We delivered a solid March Quarter to kick off 2025 and are pleased to see our revenue grow by 18.9% year over year," said Guofu Ye, Founder, Chairman and CEO of MINISO. "Our revenue growth was mainly attributable to a 9.1% revenue growth in MINISO mainland China, an acceleration from September and December quarter last year, powered by a solid recovery in same-store sales."
MINISO ended the quarter with 7,768 total stores globally, representing a net increase of 978 stores YoY. The company maintained a strong cash position of RMB7.26 billion ($999.8 million) as of March 31.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.