MINISO (MNSO) Q2 2026 Earnings Call Summary

1Key Financial Results and Metrics

Revenue: H1 revenue reached RMB 11.5 billion, up 22.4% year-over-year (YoY).

Earnings Per Share (EPS): Grew by 8.2%.

Operating Cash Flow: Increased by 46%.

Store Count: Total global store count reached 8,674, with 4,665 stores in China.

Profit Margins: Gross profit margin was 44.3%, flat YoY; adjusted operating profit was RMB 1.49 billion, down 6% YoY.

Membership Growth: China membership grew by 31% to 130 million, contributing 77% of sales in H1.

2Strategic Updates and Business Highlights

China Performance: MINISO China revenue grew by 26.2%, significantly outpacing the national retail growth of 1.3%. The company opened 97 new stores in H1, with a focus on larger store formats like Super MINISO.

Proprietary IP Development: The proprietary IP strategy showed strong results, with YOYO generating nearly RMB 500 million in H1. The company aims to lead 400 Chinese IPs onto the global stage.

TOP TOY Growth: Revenue grew by 32.7%, with a focus on proprietary IP contributing 10% of sales.

Franchisee Performance: Improved profitability metrics for franchisees, with a notable increase in larger store openings.

3Forward Guidance and Outlook

H2 Expectations: Revenue growth projected at high single digits YoY, with MINISO China expected to grow mid-upper digits and overseas revenue anticipated to grow low single digits.

Profitability Outlook: Adjusted operating profit margin expected to decline by 3-4 percentage points YoY, reflecting challenges in overseas markets and distributor revenue decline.

Store Strategy: Plans to slow down overseas store openings and focus on refining existing store operations.

4Challenges and Points of Concern

Overseas Market Performance: Overseas revenue growth fell short of expectations, with a decline in distributor business revenue and profitability dropping from 35%-40% to 10%-15% in H1.

Inventory Management: Inventory turnover issues, particularly in overseas markets, with a significant increase in inventory days.

Competitive Pressures: The retail environment in China has become volatile, with some competitors experiencing pressure, which could affect MINISO's growth trajectory.

Profit Margin Pressures: Increased expenses related to store operations and IP licensing fees have contributed to margin decline.

5Notable Q&A Insights

Large Store Format: The large store format continues to outperform expectations, with sales per square meter significantly higher than regular stores. The company is focusing on quality over speed in store openings.

Consumer Trends: Despite a challenging retail environment, MINISO reported strong growth in July and August, driven by membership and proprietary IP sales.

IP Strategy: The company is committed to enhancing its IP offerings, with upcoming collaborations expected to drive sales.

U.S. Market Strategy: The U.S. market is seen as a growth opportunity, but the company acknowledges the need for refined product strategies and improved operational efficiency to meet profitability targets. This summary encapsulates MINISO's performance and strategic direction, highlighting both achievements and challenges as the company navigates a complex retail landscape.