Miniso Group’s shares plunged sharply after the company reported disappointing earnings for the first quarter of 2025, despite reporting higher revenue.
The Chinese value retailer’s revenue rose 18.9% year-over-year to RMB 4.43 billion (about $610 million), driven by new store openings both in China and overseas.
However, its net profit fell 29% to RMB 416.5 million, and adjusted net profit declined 4.8% to RMB 587.2 million, as rising operating costs squeezed profit margins.
The company’s selling and distribution expenses surged 46.7%, largely due to expansion of directly operated overseas stores. While same-store sales in mainland China showed some improvement, with declines narrowing to mid-single digits, strong overseas revenue growth of 30.3% was not enough to offset higher costs.
Following the earnings release, Miniso’s shares dropped about 18% in Hong Kong trading to HK$34.70, their lowest since early May, and fell 17.6% to $18.29 in U.S. markets. The stock has now declined over 23% year-to-date in the U.S..
CEO Guofu Ye acknowledged the challenging economic environment ahead in 2025 but highlighted the company’s efforts in product optimization and store network refinement as foundations for sustainable growth.
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