Miniso Group Holding Ltd. reported double-digit revenue growth in the third quarter, as the Chinese retailer of home decor, cosmetics and personal care products benefited from consumer demand for affordable goods amid an uncertain economic environment.

Miniso shares gained 8.17% on Friday.

The Guangzhou-based company’s revenue rose 19.3% to 4.52 billion yuan ($644.5 million) in the three months ended September, it said in a statement Friday. That came slightly under the average analyst estimate for 20% growth. The company reported a record high 44.9% in gross margin, compared with 41.8% a year ago.

The sound earnings performance comes at a time when global luxury labels to coffee chains have seen their sales cratering in China. Young Chinese consumers facing uncertain economic prospects have instead patronized lifestyle retailers such as Miniso that sell cheap but trendy household goods.

Overseas revenue contribution increased from 32% last year to 37% this year. The company will focus on Europe and North America for its ongoing global expansion, with overseas new stores to account for half of its annual target of at least 900 new stores, Ye Guofu, founder and CEO of the company, said in an interview in Shanghai last month.

The company added 859 new stores in the first nine months of the year to a total of 7,420, including its toy store Top Toy.

Miniso surprised investors and analysts in September with a plan to buy a majority stake in Yonghui Superstores Co., one of the country’s struggling mega-supermarket operators, for 6.27 billion yuan ($867 million). The announcement sent its stock tumbling amid investor concerns over the deal.

So far, the Yonghui transaction is moving forward as planned and is expected to be closed during the first half of 2025, it said in the statement Friday.