Why Did MINISO Plunge 11.45% Despite Revenue Surge?

On May 23, 2025, MNSO experienced a significant drop of 11.45% in pre-market trading, reflecting a notable shift in investor sentiment towards the company.

MINISO Group Holding reported its Q1 2025 financial results, revealing a decline in adjusted earnings to 1.88 Chinese renminbi per diluted American depositary share, down from 1.96 renminbi a year ago. This decrease in earnings, despite a reported revenue increase, suggests that the company may be facing challenges in managing its operational costs or other financial pressures.

The company's revenue for the period grew by 18.9% year-over-year to RMB4,427.0 million, driven by a 16.5% increase in same-store sales. This growth indicates that MINISO Group is successfully expanding its market presence and attracting more customers. However, the earnings decline highlights the need for the company to focus on improving its profitability margins.