Miniso Shares Slide Over 6% as Q2 Earnings Miss, Overseas Profit Drops

Miniso Group Holding Limited (NYSE: MNSO) shares fell more than 6% in pre-market trading to around $9.69 on Monday, extending losses after the company reported second-quarter 2026 results that missed expectations. EPS came in at a loss of ¥0.94 versus a consensus profit of ¥1.95, while revenue of approximately ¥5.76 billion slightly undershot estimates. Management highlighted weaker-than-expected overseas performance as a key pressure point.

Miniso Posts Q2 Net Loss of RMB 291.5m as Overseas Profit Share Plunges to 10–15% Despite 22.4% H1 Revenue Growth

For the three months ended 30 June 2026, Miniso reported a net loss of RMB 291.5 million (about US$43 million), compared with a profit of RMB 489.5 million a year earlier. Revenue for the quarter rose but fell short of consensus.

In the first half of 2026, group revenue reached RMB 11.5 billion, up 22.4% year-over-year, driven by strong China growth of 26.2%. Overseas revenue rose but profit contribution from international operations collapsed from 35–40% in 2023 to just 10–15% in H1 2026. CEO Guofu Ye stated that “overseas performance fell short of our expectation.” CFO Eason Zhang cited a roughly 10% decline in distributor business revenue in Asia and Latin America, plus weaker same-store trends in North America linked to IP product timing and stock shortages of bestsellers.

Adjusted operating profit (ex-FX) rose modestly, but the company guided for full-year adjusted operating profit (ex-FX) to decline by a high single-digit percentage and the margin to fall 3–4 percentage points year-over-year — more cautious than earlier expectations.

Miniso Shares Hit Near 52-Week Low After HSBC, Citi and BofA Cut Targets to $10.80–$12.40

The earnings miss and sharp deterioration in the high-margin overseas business triggered multiple analyst actions. HSBC downgraded the stock from Buy to Hold with a $10.80 target. Citi moved to Neutral with an $11.30 target. BofA Securities cut its U.S. price target from $17.50 to $12.40 and reduced non-IFRS EPS forecasts by about 20% for 2026 and 16% for 2027.

These downgrades, combined with the profit warning on overseas recovery, outweighed solid China growth (26.2%) and pushed the stock lower. Broader U.S. markets were mildly negative (S&P 500 –0.2%, Dow –0.2%, Nasdaq –0.1%), amplifying the decline. Shares traded near their 52-week low of $10.01 and have fallen more than 50% over the past 12 months.

Miniso Operates 8,600+ Stores as China Drives Growth and Membership Hits 130 Million

Miniso is a Chinese lifestyle and pop-toy retailer with a global network of more than 8,600 stores as of 30 June 2026. China remains the growth engine, delivering mid-single-digit same-store sales growth and outpacing overall retail sales. Overseas expansion, once a key profit driver, has shifted toward more direct-operated stores, raising costs and compressing margins. Proprietary IP (including YOYO) and membership growth (China members up 31% to ~130 million) are strategic priorities. The company returned more than RMB 1.3 billion to shareholders in H1 2026.

Focus Turns to Overseas Recovery and 2027 Margin Inflection as H2 Growth Moderates

Investors will focus on the pace of overseas recovery, same-store sales trends in North America and distributor markets, and whether 2027 becomes the expected margin inflection point. Management expects H2 revenue growth to moderate, with China remaining mid-double-digit and overseas low-single-digit. Further analyst revisions and store-network optimization (including potential net closures overseas) will be closely watched.