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Earnings call · Jun 2026 (Q2 FY26)

MINISO Group Holding Q2 FY26 earnings call MNSO

Aug 28, 2026 Source

Executive summary

MINISO Q2 FY26 — Strong China Performance & Proprietary IP Growth Amidst Overseas Headwinds

MINISO delivered strong Q2 FY26 results in China, driven by accelerated channel upgrades, successful proprietary IP launches, and robust membership growth. However, overseas markets faced significant headwinds, including declining distributor revenue and early investment stages in direct-operated markets, leading to a more cautious full-year profit outlook. Management is strategically refining overseas operations and store models, aiming for a profit margin turnaround in 2027.

Highlights

5

  • H1 FY26 revenue reached RMB 11.5 billion, up 22.4% YoY, slightly ahead of guidance.

  • MINISO China H1 FY26 revenue grew by 26.2%, significantly outpacing broad retail sales.

  • Proprietary IP sales reached RMB 1 billion by the end of July, achieving the full-year target ahead of schedule.

  • China membership grew by 31% to 130 million, with member contribution to sales rising to 77% in H1 FY26.

  • North America H1 FY26 revenue grew by 37% to RMB 1.8 billion, broadly in line with expectations.

Concerns

5

  • Overseas performance fell short of expectation, with its contribution to company profit declining from 35%-20% in 2023 to 10%-15% in H1 FY26.

  • Overseas revenue grew 15% in H1 FY26, below guidance of high double-digit growth, mainly due to a 10% decline in distributor business revenue.

  • Adjusted operating profit, excluding ForEx, grew by 5% YoY in H1 FY26, slightly below earlier projection of high single-digit growth.

  • MINISO overseas inventory turnover increased to 273 days in H1 FY26, up from 240 days last year.

  • Full-year FY26 adjusted operating profit margin is expected to decline 3 to 4 percentage points YoY, a more cautious outlook than previously guided.

Guidance & targets

CategoryTargetConfidence
Full-year FY26 Revenue Growth
mid-double digit
high materiality
High
H2 FY26 Revenue Growth
high single-digit YoY
medium materiality
High
H2 FY26 MINISO China Revenue Growth
mid-double digit
medium materiality
High
H2 FY26 MINISO Overseas Distributor Revenue
decline by low double digits
medium materiality
High
H2 FY26 Overseas Directly Operated Business Growth
low double digit
medium materiality
High
H2 FY26 Top Toy Revenue Growth
flat
low materiality
High
Full-year FY26 Top Toy Growth
low double-digit growth
low materiality
High
Full-year FY26 MINISO China Same-Store Growth
low single-digit
medium materiality
High
Full-year FY26 MINISO North America Same-Store Growth
low single-digit
medium materiality
High
Full-year FY26 Adjusted Operating Profit Decline (excl. ForEx)
high single-digit Y-o-Y
high materiality
High
Full-year FY26 Adjusted Operating Profit Margin Decline
3 to 4 percentage points Y-o-Y
high materiality
High
Shareholder Return Policy
buybacks + dividends of no less than 50% of adjusted net profit (excluding ForEx effect)
high materiality
High
North America Full-Year Scale and Net Margin
RMB 4 billion in scale with 10% net margin
high materiality
High
GP Margin Support from Tariff Refunds
20 bps to 30 bps
low materiality
High
Profit Margin Turning Point
turning point
high materiality
Medium

Segment performance

SegmentRevenueYoYQoQMargin
MINISO Group (Total)
Overall group performance for H1 FY26, with strong revenue growth and cash flow generation.
Global store count: 8,674Operating cash flow growth: 46%
RMB 11.5 billion22.4%——
MINISO China
Strong H1 FY26 revenue growth, significantly outpacing the broader retail market, driven by channel upgrades, proprietary IP success, and robust membership engagement. Land format stores delivered twice the sales per square meter of regular stores.
Store count: 4,665 (end of Q2 FY26)Net store addition (H1 FY26): 97 storesStore count growth (end of June): 8%Store renovations completed (H1 FY26): 189Franchise profitability: best level since 2019 (H1 FY26)Proprietary IP related revenue (H1 FY26): nearly RMB 500 millionMembership growth (H1 FY26): 31%Member count (H1 FY26): 130 millionMember contribution to sales (H1 FY26): 77%Average transaction value growth: 5%Cost contribution of China member: 2x higher of nonmembersAverage transaction value of IP member: 3x of non-IP membersIP member retention rate (newly acquired in 2025, H1 FY26): 80% point higher than non-IP membersIP member purchase frequency: 2x higher than non-IP membersGMV growth (July): about 20% YoYSame-store average daily sales growth (July): mid-single digitsProprietary IP share of sales: mid-single-digit (overall), double-digit (online)
—26.2%——
MINISO Overseas
H1 FY26 revenue growth was below expectations, with a significant decline in profit contribution. This was primarily due to a decrease in distributor business revenue and early investment stages in direct-operated markets. The company is shifting focus to quality over scale, with planned store reductions in H2 FY26.
Store count: 3,644Contribution to company profit (H1 FY26): declined from 35%-20% in 2023Distributor business revenue decline (H1 FY26): 10%GMV growth (H1 FY26): 40% YoYGMV (H1 FY26): RMB 8.29 billionRevenue growth (H1 FY26): 50%Same-store sales (H1 FY26): declined low single digitsNet reduction of stores (H2 FY26): 50 to 70 storesNet addition of directly operated stores (H2 FY26): 40 to 50Net reduction of distribution stores (H2 FY26): 100 to 110
RMB 4.06 billion40.9%—10%-15% of company profit
MINISO Overseas - Asia
Experienced revenue decline in H1 FY26 due to macro challenges in markets like Indonesia, India, and the Philippines, and proactive cleanup of underperforming stores. Vietnam showed strong improvement with 20% same-store sales growth in Q2.
Terminal GMV growth (H1 FY26): low single-digit YoYVietnam same-store sales growth (Q2 FY26): 20%
—low single digit decline——
MINISO Overseas - Latin America
Revenue declined in H1 FY26 due to external challenges like political volatilities and natural disasters in core markets like Colombia. However, terminal demand remained resilient, with Mexico showing strong local GMV growth.
Terminal GMV growth (H1 FY26): high single-digit YoYMexico local GMV growth (excluding ForEx): nearly 20%
—low double-digit decline——
MINISO Overseas - North America
H1 FY26 revenue was in line with expectations, but Q2 growth moderated due to temporary gaps in IP product launches and stock-outs. Upfront investment in new stores impacted short-term profitability, but new stores are outperforming older ones.
Same-store growth (H1 FY26): mid-single-digit2-year CAGR (Q2 FY26): around 50%Net increase of stores (H1 FY26): 75 storesSame-store performance (Q1 FY26): 10% growthLocally directed sourced product share: declining from 60-70% (early 2024) to close 40% (H1 FY26)U.S. GP margin: around 65% to 70%
RMB 1.8 billion37%25%—
MINISO Overseas - Europe
Revenue growth moderated in H1 FY26, with same-store sales declining. The team is focused on building organizational capacity and refining the store model.
Same-store sales (H1 FY26): down by mid- to single digits
—26%——
TOP TOY
Strong revenue growth in H1 FY26, with proprietary IP contributing significantly. Expanding global footprint with new stores in key international locations.
Global store numbers: 365 (48 overseas)Proprietary IP share (H1 FY26): 10%Flagship IP 'Ayan' cumulative GMV: surpassed RMB 300 million
—32.7%——

Product announcements

ProductTypeDetails
Super MINISOlaunch
Yuyu (proprietary IP)milestone
Ayan (TOP TOY flagship IP)milestone
Artist IP [indiscernible]launch
Lisa branded pop-up storelaunch
[indiscernible] collaborationlaunch
MINISO Land format (Mexico)expansion

Deals & partnerships

Disney Toy Story Fashion collaboration with proprietary IP 'Yuyu'

Yuyu Disney Toy Story 5 fashion and Moody's [indiscernible] versions sold strongly across stores in multiple countries.

McDonald's Collaboration with proprietary IP 'Yuyu'

Yuyu has collaborated with McDonald's.

[indiscernible] coffee Collaboration with proprietary IP 'Yuyu'

Yuyu is working with [indiscernible] coffee.

Louis Vuitton Collaboration with celebrities

Collaboration with Louis Vuitton, described as a well-established global leading strategy.

Risks & headwinds

Decline in overseas distributor business revenue H1 FY26, expected to continue in H2 FY26

10% decline in H1 FY26

Mitigation:Proactively cleaning up underperforming stores, slowing store openings, focusing on localized operating capacity, product mix adjustment, and strategic store closures (100-110 distribution stores in H2 FY26).

Early investment stage and unprofitability in direct-operated overseas markets (outside North America/Europe) H1 FY26, ongoing

Still in early investment stage; store models are still in refinement and not yet profitable; overseas contribution to company profit declined from 35%-20% in 2023 to 10%-15% in H1 FY26.

Mitigation:More focused and prudent ROI assessment for new stores, concentrating resources in priority markets, refining store models, and deepening store operations.

Weakening same-store performance in North America Q2 FY26

Mid-single-digit same-store sales growth in H1 FY26, below prior guidance of high single to low double digits; moderated in Q2 FY26.

Mitigation:Optimizing IP product launch cadence, improving advanced planning of overseas merchandise, deepening store operations, and addressing stock-out issues.

Temporary gap in IP product launches and stock-outs in North America H1 FY26, Q2 FY26

Didn't maintain a sufficiently steady frequency of IP launches, affecting store traffic and conversion; stock-out of certain best-selling IP products.

Mitigation:Optimizing IP product patent spending, building a more complete launch calendar, and expecting stock-out issues to ease by September.

Increased inventory turnover for overseas business H1 FY26

MINISO overseas inventory turnover was 273 days in H1 FY26, up from 240 days last year.

Mitigation:Prioritizing inventory health, leveraging IP launches and holidays for sales, coordinated membership promotion, and phasing out low-efficiency SKUs.

Macro challenges and geopolitical conflicts in Asia and Latin America distributor markets H1 FY26

Markets like Indonesia, India, Philippines, and Colombia faced macro challenges (political volatilities, rising freight costs, natural disasters) impacting orders and shipments.

Mitigation:Enhancing localized operating capacities, channel upgrades, product mix adjustment, and strategic store closures.

Overall adjusted operating profit margin decline Full year FY26

Expected to decline 3 to 4 percentage points Y-o-Y for the full year FY26.

Mitigation:Optimizing North America back office expenses, focusing on structural shifts in revenue contribution, and aiming for 2027 as the turning point for profit margin improvement.

What to watch in Q3 FY26

North America IP product stock-out resolution

September
Current Stock out of certain best-selling IP products
Target Eased

Why it matters

Stock-outs impacted Q2 North America same-store sales; resolution is key for H2 performance and achieving full-year targets.

North America same-store performance was quite strong in Q1 grew by 10%, but moderated in Q2, particularly because the stock out of the certain best seller, especially the best [indiscernible] IP product, we expect this stock out would be eased in September.

Q&A highlights

How do large stores perform long-term compared to normal stores in terms of efficiency and sales per square meter, and what are the selection criteria for these stores?

The large store model continues to outperform expectations, with MINISO Land stores delivering sales per square meter twice that of regular stores and a payback period of 6 months, significantly faster than regular stores. Site selection prioritizes location value, high traffic, corner positions, and main customer traffic corridors.

“The larger store model continues to outperform company expectation because our first large store has been opened for 2 years. It's not going to be a short-term action, but at the same time, we have multiple large stores at the same time. It's not just for 1 to 2 stores.”

asked by Michelle Cheng · answered by Guofu Ye

2 min read 6 chapters

Detailed narrative

China Market Outperformance and Channel Upgrade

MINISO China's H1 FY26 revenue grew 26.2%, significantly outpacing the 1.3% growth in China's total retail sales. This strong performance was driven by an accelerated channel upgrade strategy, including a net addition of 97 stores in H1 (59 flagship, 159 land format, 121 regular store closures), and a substantial increase in per-store output. The company completed 189 store renovations in H1, with post-renovation stores doubling YoY performance, and is on track to exceed its full-year target of 255 renovations.

Proprietary IP as a Key Growth Engine

The company's proprietary IP strategy is gaining significant traction, with its first proprietary IP, 'Yuyu,' generating nearly RMB 500 million in related revenue in H1 FY26 and expanding into 53 countries. The group-wide target of RMB 1 billion in proprietary IP sales for the year was achieved ahead of schedule by the end of July. This success validates MINISO's multi-IP, multi-category localization strategy and positions the company as a leading IP operating platform, with proprietary IP products showing higher profit margins and faster inventory turnover.

Maturation of Membership Strategy

MINISO China's membership program is maturing into a key growth lever. Membership grew 31% in H1 FY26, reaching 130 million, with member contribution to sales rising to 77%. The program is driving a 5% increase in average transaction value, and IP members demonstrate 80% higher retention and 2x higher purchase frequency than non-IP members. This indicates a strategic shift towards system-driven growth and enhanced customer lifetime value.

Overseas Market Challenges and Strategic Shift

Overseas revenue growth of 15% in H1 FY26 fell short of expectations, primarily due to a 10% decline in distributor business revenue and early investment stages in direct-operated markets. The company is transitioning from a 'scale first' to a 'quality first' approach, slowing store openings, and focusing on refining existing store models and localized operations. This includes proactively cleaning up underperforming stores and concentrating resources in priority markets, with an expected net reduction of 50-70 overseas stores in H2 FY26.

North America Performance and Inventory Management

North America H1 FY26 revenue grew 37% to RMB 1.8 billion, but Q2 saw moderation due to a temporary gap in IP product launches and stock-outs of best-selling IP products. Management is addressing merchandise planning and expects stock-out issues to ease by September. Upfront investment in new directly operated stores also impacted short-term profitability, but new stores are delivering higher profit margins and sales per square meter, outperforming older units.

TOP TOY Growth and IP Expansion

TOP TOY revenue grew 32.7% in H1 FY26, operating 365 global stores, including 48 overseas. Proprietary IP accounted for 10% of TOP TOY's business, with its flagship IP 'Ayan' surpassing RMB 300 million in cumulative GMV. The brand is actively expanding its IP matrix and establishing a global presence, including its first U.S. store in New York, demonstrating its potential as a distinct growth driver within the group.

AI-generated summary of the company's earnings call. Not investment advice.