MINISO Group (NYSE:MNSO) Announces Quarterly Earnings Results

Key Points

• MINISO reported quarterly EPS of $0.25, missing the $0.31 consensus estimate by $0.06.
• First-half revenue increased 22.4% to RMB 11.5 billion, led by 26.2% growth in China, while proprietary intellectual property became a major growth driver.
• Overseas weakness pressured profitability: the company plans to reduce overseas stores and cut full-year adjusted operating-profit guidance to a high-single-digit decline, with margins expected to fall 3–4 percentage points.

MINISO Group (NYSE:MNSO - Get Free Report) released its quarterly earnings data on Friday. The company reported $0.25 EPS for the quarter, missing the consensus estimate of $0.31 by ($0.06), Zacks reports. MINISO Group had a net margin of 9.03% and a return on equity of 18.98%.

Here are the key takeaways from MINISO Group's conference call:

• Strong H1 growth was led by China: Revenue rose 22.4% to RMB 11.5 billion, with MINISO China revenue up 26.2% and operating cash flow increasing 46%. China’s larger-store formats, renovations, proprietary IP and membership program all contributed to higher per-store productivity.
• Proprietary IP is emerging as a growth engine. YOYO generated nearly RMB 500 million of H1 revenue, while group proprietary-IP sales surpassed the RMB 1 billion target ahead of schedule; new IP Chou Chou also reportedly sold out rapidly. TOP TOY revenue increased 32.7%, with its NOMI IP exceeding RMB 300 million in cumulative GMV.
• Overseas execution weighed on profitability. Distributor revenue declined, directly operated markets outside North America remained in the investment stage, and overseas inventory turnover worsened to 273 days from 240 days. Management plans to close 100–110 distributor stores and reduce total overseas store count by 50–70 in H2.
• Full-year profit guidance was downgraded. Excluding foreign-exchange effects, adjusted operating profit is now expected to decline by high single digits, with operating margin down 3–4 percentage points year over year versus the prior expectation of a 1–2 point decline. Management expects H2 revenue growth to slow to high single digits, primarily because of weaker overseas distributor revenue and a flat TOP TOY outlook.
• The company returned RMB 1.31 billion to shareholders in H1 through dividends and buybacks, including RMB 520 million of repurchases, and plans substantial additional buybacks. Management reaffirmed a full-year shareholder-return target of at least 50% of adjusted net profit, excluding foreign-exchange effects.

MINISO Group Price Performance

MINISO Group stock opened at $10.79 on Friday. The stock has a market cap of $3.34 billion, a price-to-earnings ratio of 11.48, a price-to-earnings-growth ratio of 1.42 and a beta of 0.11. The company has a debt-to-equity ratio of 0.76, a current ratio of 1.53 and a quick ratio of 1.14. MINISO Group has a 1 year low of $10.64 and a 1 year high of $25.92. The firm has a 50-day moving average of $11.94 and a two-hundred day moving average of $14.39.

Analysts Set New Price Targets

A number of research firms recently commented on MNSO. Wall Street Zen raised shares of MINISO Group from a "hold" rating to a "buy" rating in a research note on Saturday, May 30th. JPMorgan Chase & Co. reduced their price objective on shares of MINISO Group from $26.00 to $16.00 and set an "overweight" rating on the stock in a research report on Friday, May 29th. Zacks Research raised shares of MINISO Group from a "strong sell" rating to a "hold" rating in a research note on Tuesday, July 28th. Finally, Weiss Ratings lowered MINISO Group from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Thursday, June 25th. Two analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Hold" and a consensus target price of $19.50.

Insider Buying and Selling

In related news, CEO Guofu Ye bought 150,000 shares of MINISO Group stock in a transaction dated Monday, June 1st. The shares were acquired at an average cost of $3.35 per share, with a total value of $502,500.00. Following the completion of the transaction, the chief executive officer owned 315,740,482 shares in the company, valued at $1,057,730,614.70. The trade was a 0.05% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, VP Yunyun (Alice) Yang purchased 150,000 shares of the firm's stock in a transaction dated Monday, June 1st. The shares were bought at an average cost of $3.35 per share, with a total value of $502,500.00. Following the purchase, the vice president directly owned 315,740,482 shares of the company's stock, valued at approximately $1,057,730,614.70. This represents a 0.05% increase in their position. The disclosure for this purchase is available in the SEC filing. Company insiders own 73.50% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the company. Caitong International Asset Management Co. Ltd bought a new stake in MINISO Group during the 3rd quarter valued at $25,000. EverSource Wealth Advisors LLC increased its stake in shares of MINISO Group by 37.6% during the second quarter. EverSource Wealth Advisors LLC now owns 2,223 shares of the company's stock valued at $41,000 after buying an additional 608 shares during the period. PNC Financial Services Group Inc. increased its stake in shares of MINISO Group by 28.3% during the third quarter. PNC Financial Services Group Inc. now owns 2,480 shares of the company's stock valued at $56,000 after buying an additional 547 shares during the period. Atlas Capital Advisors Inc. bought a new stake in shares of MINISO Group in the fourth quarter valued at about $126,000. Finally, Vise Technologies Inc. bought a new stake in shares of MINISO Group in the third quarter valued at about $214,000. 17.16% of the stock is currently owned by hedge funds and other institutional investors.

MINISO Group Company Profile

MINISO Group NYSE: MNSO is a global retailer specializing in lifestyle and consumer goods. Since its founding in 2013, the company has focused on offering affordable, design-driven products across a broad range of categories. MINISO's stores feature a clean, minimalist layout and emphasize a “fast fashion” inventory model designed to turn over goods quickly and respond to emerging trends.

The company's product mix spans household items, kitchenware, cosmetics and personal care, stationery, toys, digital accessories, apparel and seasonal items.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source