MINISO Group Q2 Earnings Call Highlights

Key Points

• MINISO’s China business drove growth: First-half revenue increased 22.4% to RMB11.5 billion, while China revenue rose 26.2%. Larger MINISO Land and flagship stores, renovations and the Super MINISO format improved sales productivity.
• Proprietary IP and memberships gained momentum: YOYO generated nearly RMB500 million in first-half revenue, and proprietary-IP sales reached the company’s RMB1 billion target ahead of schedule. China membership grew 31% to 130 million, with members accounting for 77% of sales.
• Overseas operations and profitability remain under pressure: Despite 40.9% overseas revenue growth, distributor weakness, elevated inventory and higher operating costs weighed on margins. Management expects high-single-digit second-half revenue growth and a high-single-digit full-year decline in adjusted operating profit, while prioritizing store optimization and share repurchases.

MINISO Group NYSE: MNSO reported first-half 2026 revenue of RMB11.5 billion, up 22.4% from a year earlier, as stronger domestic sales and store-format upgrades offset weaker-than-expected performance in parts of its overseas business. Founder and CEO Ye Guofu said the company’s global store count reached 8,674, while operating cash flow rose 46%.

Management emphasized that its growth strategy is increasingly centered on larger store formats, proprietary intellectual property and membership operations. Ye said the company is prioritizing the long-term significance of those initiatives over near-term financial fluctuations.

China business outpaces retail market

MINISO’s China revenue rose 26.2% in the first half, its fastest first-half growth rate in three years, according to management. The company said the performance exceeded its internal guidance and outpaced China’s broader consumer retail market.

At the end of the second quarter, MINISO China had 4,665 stores, representing a net addition of 97 stores during the first half. The company added 59 MINISO Land stores and 159 flagship stores, while regular stores recorded a net closure of 121 locations. Ye said the company’s 100th MINISO Land store in China opened in Chengdu on Aug. 22.

Revenue growth outpaced store-count growth, which management said reflected higher per-store output and improved sales productivity. Ye said MINISO Land stores generate sales per square meter at roughly twice the level of regular stores. The company completed 189 store renovations in the first half and said renovated stores saw performance double year over year.

The company also introduced Super MINISO, a format combining approximately 50% IP merchandise with 50% general lifestyle products. Ye said the format is intended to bring an IP-focused shopping experience to a broader consumer base while maintaining MINISO’s value-oriented positioning.

During the question-and-answer session, Ye said MINISO Land stores maintained monthly sales above RMB3 million, while Super MINISO stores had remained above a RMB1 million baseline. He said the company expects China’s total MINISO store count to eventually reach 7,000 to 8,000 locations, including roughly 1,200 MINISO Land-family stores and 2,000 flagship stores.

Proprietary IP and membership gain traction

Management highlighted proprietary IP as a new growth driver. Ye said YOYO, MINISO’s first proprietary IP, entered 53 countries within a year of its launch and generated nearly RMB500 million in related revenue during the first half. The company’s group-wide target of RMB1 billion in proprietary-IP sales was reached by the end of July, ahead of schedule.

Ye also cited demand for the newly launched Chou Chou designer-toy IP, which sold out on its debut day. He said 5,000 sets sold through a livestream within one second on Aug. 26. TOP TOY’s proprietary IP NOMI has surpassed RMB300 million in cumulative gross merchandise value, according to the company.

MINISO said its China membership base grew 31% to 130 million members in the first half. Management said member sales contribution increased to 77%, while member spending was approximately twice that of nonmembers. IP members had average transaction values more than three times those of non-IP members, Ye said.

Chief Financial Officer Eason Zhang Jingjing said proprietary-IP products have generated margins above the company average and inventory turnover of 30 to 40 days, adding that the initiative had not pressured overall profitability.

Overseas operations enter a refinement phase

Overseas revenue reached RMB4.06 billion in the first half, up 40.9%, according to Ye. However, management said overseas performance fell short of expectations and weighed on group profitability as distributor revenue declined and directly operated markets outside North America remained in an investment phase.

Zhang said overseas distributor revenue declined 10% in the first half, while the company faced temporary weakness in certain Asian and Latin American markets. Management attributed the pressure to factors including inventory digestion, store closures in underperforming locations and external conditions in certain markets.

In North America, first-half revenue rose 37% to nearly RMB1.8 billion. Same-store sales growth moderated in the second quarter, which management attributed to gaps in IP product launches, stockouts of certain popular IP products and adjustments to product sourcing. Zhang said the company expects stockouts to ease in September.

Ye said MINISO will slow the pace of directly operated overseas openings and concentrate on improving the performance of its approximately 800 existing directly operated stores. In the second half, the company expects a net reduction of 50 to 70 overseas stores, consisting of 40 to 50 net additions in directly operated stores and 100 to 110 net closures among distributor stores.

TOP TOY revenue increased 32.7% in the first half, with 365 global stores, including 48 overseas locations. The company opened its first U.S. TOP TOY store in New York’s Times Square during the quarter.

Margins and outlook

First-half gross margin was 44.3%, flat from a year earlier, including an approximately 0.6-percentage-point benefit from U.S. tariff refunds. Adjusted operating profit, excluding foreign-exchange effects, rose 5% to RMB1.63 billion. Adjusted net profit excluding foreign-exchange effects declined 1.7% to RMB1.22 billion.

Management said the adjusted net margin declined as selling expenses rose, reflecting higher rent and depreciation associated with directly operated stores, advertising and promotion spending, IP licensing fees and store labor costs. Overseas inventory turnover rose to 273 days from 240 days a year earlier, prompting management to prioritize inventory health.

For the second half, MINISO expects revenue growth in the high single digits, with full-year revenue growth in the mid-double digits. China revenue is projected to grow in the mid-double digits in the second half, while overseas revenue is expected to grow in the low single digits. The company expects adjusted operating profit, excluding foreign-exchange effects, to decline by a high single-digit percentage for the full year, with adjusted operating margin down 3 to 4 percentage points.

At the end of June, MINISO had RMB7.39 billion in cash reserves. The company returned RMB1.31 billion to shareholders during the first half through dividends and buybacks, including RMB520 million in repurchases. Management said it did not declare an interim dividend because it views its current valuation as attractive and intends to continue substantial share repurchases.

About MINISO Group (NYSE:MNSO)

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.

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