MINISO Q1 2026 Earnings Call Summary

1Key Financial Results and Metrics

Revenue: RMB 5.7 billion, a 28.5% increase year-over-year, exceeding guidance.

Adjusted Net Profit: RMB 630 million, an 8% increase.

Operating Cash Flow: Grew by 40%.

Free Cash Flow: Increased by 36%.

Gross Margin: 43.3%, down from 44.2% YoY.

Operating Expenses: Grew by 34%, with selling expenses up 37.7%.

Same-Store Sales Growth: High single-digit growth in China; mid-double-digit growth in North America.

2Strategic Updates and Business Highlights

Store Expansion: Added 318 stores in China, with a focus on large format stores; received thousands of new applications for flagship stores.

IP Strategy: Successful launch of proprietary IP "YOYO," generating over RMB 100 million in sales within six months and gaining international recognition.

Membership Growth: Membership sales contributed 73% of total sales in Q1, up from 60% YoY.

International Markets: Positive trends in Indonesia and Mexico, with a focus on tailored merchandising and membership strategies to drive repeat purchases.

Themed Stores: Continued rollout of MINISO LAND and MINISO SPACE, enhancing customer experience and engagement.

3Forward Guidance and Outlook

Full Year 2026 Expectations: Revenue growth projected at high double digits; net store additions between 450 to 500.

Same-Store Sales: Anticipated continued positive growth in China and North America, with a focus on leveraging membership for sustained sales.

H2 Drivers: Membership growth, channel upgrades, and a strong pipeline of IP launches expected to drive performance.

4Bad News, Challenges, or Points of Concern

Gross Margin Decline: Margins decreased due to a higher mix of lower-margin overseas business and increased operational costs.

Operating Expenses: Rising expenses, particularly in selling and logistics, which could pressure profitability.

Foreign Exchange Losses: Recorded a net loss of RMB 80 million due to currency fluctuations, impacting margins.

Market Conditions: Inflationary pressures and rising crude oil prices could affect consumer spending and operational costs.

5Notable Q&A Insights

Overseas Market Demand: Management indicated that while there are challenges, they are proactively managing costs and adjusting pricing strategies to maintain margins.

Indonesia and Mexico Performance: Positive same-store sales trends noted, with strategies in place to enhance store formats and IP operations in both markets.

China Market Resilience: Despite broader retail challenges, MINISO's performance remains strong, driven by effective membership strategies and store renovations.

U.S. Market Strategy: The rollout of larger store formats has shown promising results, with a payback period of around one year, contributing to confidence in future growth. Overall, MINISO's Q1 2026 results reflect strong revenue growth and strategic execution, although challenges related to margin pressures and external market conditions remain. The company is optimistic about its future trajectory, particularly in leveraging its membership model and expanding its international presence.