BRIEF: Miniso’s revenue rises, but profit falls as same-store sales remain weak

Retailer Miniso Group Holding Ltd. (MNSO.US; 9896.HK) reported on Friday its revenue rose but its profit fell in the first quarter, as business from new store openings helped to offset continuing same-store sales declines in its home China market.

The company said its first-quarter revenue rose 18.9% to 4.43 billion yuan ($616 million) year-on-year, as it opened 978 net new stores over the last 12 months, bringing its total to 7,488 as of March 31. Of that total, 4,275 stores were in China, up by 241 over the last 12 months, while 3,213 were overseas, up by 617 over the last 12 months.

The company said its profit fell 29% to 417 million yuan in the first quarter from 586 million yuan a year earlier. It added its same-store sales in China fell by a mid-single-digit percentage amount, representing a significant improvement from bigger declines in recent quarters.

Miniso’s U.S.-listed shares fell 17.6% in Friday trading in New York after the report’s release, and are now down 23.4% this year. The company’s Hong Kong-listed shares fell 16.9% in Monday morning trading.

By Doug Young

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