MINISO Group Holding Limited (MNSO) saw its stock soar 6.92% in pre-market trading on Friday, November 29, 2024, following the release of its impressive third-quarter financial results and promising growth outlook.
The Chinese lifestyle retailer reported a 23% year-over-year increase in revenue to 12.28 billion yuan ($1.75 billion) for the quarter ended September 30. This growth was fueled by the company's aggressive global expansion, with the addition of 859 new stores across various brands, and particularly strong performance in overseas markets, where revenue surged 41%. MINISO's gross profit margin improved by 3.7 percentage points to 44.1%, while adjusted net profit climbed 14% year-over-year to 1.93 billion yuan ($275 million).
MINISO's strong performance can be attributed to its focus on affordable and trendy product offerings, which resonated with consumers amid the uncertain economic environment. The company's expansion into overseas markets, particularly Europe and North America, also contributed to its growth. MINISO plans to maintain its 20% compound revenue growth target and continue opening 900-1100 new stores globally each year, with a focus on increasing its overseas sales to over 50% by 2028.
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