Why Is MINISO Stock Diving Tuesday?

Zinger Key Points
  • MINISO Group reported Q3 FY24 revenue of $515.70M, missing the consensus of $597.22M.
  • Gross profit rose 39.1% Y/Y to $223.9M with gross margin of 43.4%, while adjusted earnings per ADS of $0.27 missed the Wall Street view.

MINISO Group Holding Limited MNSO shares are trading lower after the company reported third-quarter results.

Quarterly revenue of $515.70 million missed the analyst consensus of $597.22 million. Revenues soared 26.0% Y/Y, led by a 19.3% increase in the average store count and around 9% same-store sales growth on a group level.

The third quarter’s gross profit was $223.9 million, representing an increase of 39.1% Y/Y. Gross margin was 43.4%, compared to 39.3% in the same period last year.

Adjusted net profit in the quarter under review was $85.4 million, representing an increase of 27.7% Y/Y. Adjusted net margin was 16.6%, compared to 16.4% in the year-ago period.

Adjusted EBITDA was $133.7 million, representing an increase of 36.7% Y/Y, while adjusted EBITDA margin was 25.9%, compared to 23.9% in the same period of 2022.

Adjusted earnings per ADS of $0.27, missed the Wall Street view of $0.33.

As of March-end, MINISO brand has expanded its retail footprint to a significant milestone of 6,630 stores, underscored by a remarkable net addition of 217 stores in the March Quarter alone.

Guofu Ye, Founder, Chairman, and CEO, said, “This past March Quarter has seen our fastest pace of store openings for the first quarters ever, establishing a robust foundation towards our goal of a net addition of 900 to 1,100 stores in 2024.

Eason Zhang, CFO and Vice President, said, “Looking forward into the June quarter 2024, we expect our sales to continue to grow healthily on a year-over-year basis, driven by better store-level performance and store network expansion.”

Investors can gain exposure to the stock via Tidal Trust II CoreValues Alpha Greater China Growth ETF CGRO.

Price Action: MNSO shares are down 7.9% to $23.34 at the last check Tuesday.

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