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China momentum and overseas pressure stood out in Miniso's results

Miniso delivered two very different pictures in its interim results released on August 28. The company's China operations posted strong growth in the first half of 2026, while the cost of overseas expansion weighed on profitability. Adjusted operating profit fell 6% year on year to RMB 1.49 billion, while adjusted net profit excluding currency effects declined 1.7% to RMB 1.22 billion.

Revenue from Miniso's China business rose 26.2% in the first half. That came against a backdrop of just 1.3% growth in nationwide retail sales, suggesting the company benefited not only from market conditions but also from market share gains.

Miniso's membership program in China reached 130 million people, growing 31% year on year. Spending by members accounted for 77% of the company's China sales, up from 60% in the same period last year. That points to a more predictable demand base for the company.

Brand licenses and TOP TOY created additional growth

Miniso's growth strategy based on its own intellectual property products also supported revenue. YOYO, a brand launched a little over a year ago, expanded to 53 countries and generated about RMB 500 million in revenue in the first half. Disney's Toy Story 5 collaboration also contributed to that performance.

The company said it had already met its full-year RMB 1 billion companywide original IP sales target by the end of July. The retention rate of members acquired through IP products in 2025 was 80% higher in the first half of 2026 than that of other members, while purchase frequency in this group doubled. Separate collectibles brand TOP TOY increased revenue by 32.7% over the same period.

Overseas operations faced margin and inventory pressure

The weakness in profitability was driven in part by Miniso's shift from a distributor model to company-operated stores. The ratio of selling expenses to revenue rose to 25.8% from 23.1% a year earlier. The company linked the increase mainly to higher rent and depreciation costs.

The contribution of international markets to total profit fell to the 10%-15% range in the first half of 2026, down from 35%-40% in 2023. Distributor revenue in Asia and Latin America also declined 10%, coming in below the company's previous guidance.

North America grew, but inventory turnover slowed

In North America, Miniso's largest overseas directly operated market, revenue rose 37% to RMB 1.8 billion. Even so, same-store sales growth slowed to the mid-single digits in the second quarter. The company said the slowdown was driven by shortages of best-selling products and gaps in new IP launches.

Overseas inventory turnover days increased to 273 days from 240 days a year earlier. Management expects full-year adjusted operating profit to fall by a high-single-digit percentage as it works through excess stock.

What market indicators are saying about Miniso stock

The number of hedge funds holding Miniso shares rose from 12 to 14 in the latest quarter. Short interest remained low at just 2.45% of shares outstanding, suggesting there was no large coordinated bearish position against the stock. As of August 28, Miniso shares were trading at 7.55 times forward earnings.

  • Strong membership growth and IP sales in China remain the main supports for revenue.
  • Falling overseas profit contribution, higher costs and longer inventory days are the key risks investors are watching closely.
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