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Investing.com-- Shares of Miniso Group (NYSE:MNSO) (HK:9896) tumbled 18% on Monday after the Chinese value retailer reported weak earnings for the March quarter, despite revenue growth.
The company on Friday posted an 18.9% year-over-year revenue increase to RMB4.43 billion ($610 million), but profit for the period fell 29% to RMB416.5 million.
Adjusted net profit also declined 4.8% to RMB587.2 million, with margins shrinking due to higher operating costs.
Hong Kong-listed shares of the company fell 18% to HK$34.70, their lowest level since May 8.
U.S.-listed shares closed 17.6% lower at $18.29 on Friday.
The drop in profitability was driven by a 46.7% surge in selling and distribution expenses, as Miniso expanded its overseas directly operated stores.
While same-store sales in mainland China showed improvement, overseas growth, led by a 30.3% revenue jump, failed to offset rising costs.
"Entering into 2025, we are facing an increasingly volatile macroeconomic environment," said company CEO Guofu Ye.