Luckin Coffee Inc. (LKNCY.US) on Monday reported its slowest revenue growth since its major accounting scandal in 2020, as it recorded a second consecutive quarter of same-store sales declines and continued to open new stores at a brisk pace.
Luckin reported revenue of 15.9 billion yuan ($2.35 billion) for the three months to June, up 28.5% from 12.4 billion yuan a year earlier. That marked its first time growing less than 30% since the company’s 2020 accounting scandal involving hundreds of millions of dollars in fake sales, which saw it removed from trading on the Nasdaq and become an over-the-counter stock.
The company opened 2,714 net new stores during the second quarter, up from 2,548 new openings in the previous quarter. It had 36,310 stores at the end of June, up 8.1% from three months earlier, including 23,734 self-operated stores and 12,576 partnership stores. Same-store sales for its self-operated shops fell 5.3% during the second quarter, as the company blamed strong year-ago sales fueled by a subsidy war among China’s three leading takeout delivery companies.
The company’s net income rose 16.1% year-on-year during the second quarter to 1.49 billion yuan.
Luckin’s shares rose 6% to close at $37.10 on Monday after the announcement. The stock is up about 11% this year.
By Doug Young
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