MINISO Group Holding(MNSO 6.00%) reported fiscal Q2 2025 results on Aug. 21, 2025, with revenue rising 23.1% to RMB 4.97 billion and gross margin reaching 44.3%. Outstanding performance in overseas operations, rapid expansion of the TOP TOY business, and a strategic focus on large-format experiential stores and proprietary intellectual property (IP) were central themes of the call; management also issued guidance for full-year fiscal 2025 revenue to exceed RMB 21 billion and committed to ongoing sizeable capital returns.

MINISO accelerates revenue and margin gains by upgrading store formats

Large-format "MINISO LAND" and flagship stores now constitute 5% of the mainland China store network, but have contributed a mid-double-digit percentage of domestic sales growth to date, supported by flagship locations like Shanghai Nanjing East Road (RMB 100 million sales in nine months). Store productivity gains are underpinned by store-level gross profit margins above standard outlets, and new large stores in the U.S. have exhibited 1.5x higher efficiency and 30% higher sales per square meter than existing stores.

"We can see even for the past 2 quarters, we don't see the big change for absolute number of the stores. But actually, our channel structure has already been upgraded. We are not purely seeking for the quantity growth. We continue to optimize our channel mix and continue to seek for incremental growth opportunities."
-- Guofu Ye, Founder, Chairman and CEO

This shift toward larger, more experiential stores is driving higher sales productivity and supports a long-term strategy of quality over quantity in store expansion.

Proprietary IP emerges as high-value, margin-accretive growth engine

90% of group revenue comes from proprietary products, with nine new artist IPs contracted this year. Yu Yu Chan is expected to achieve RMB 100 million in sales in the coming year. The IP flywheel is further extended by MINISO LAND serving as both high-traffic launch venues and IP co-creation spaces, with select proprietary IP products selling out immediately on launch.

"We now contracted 9 artist IPs. [ Yu yu Chan ] is actually our first one. And I truly believe for this year, Yu Yu and going to actually make a very good sales. And the next year is going to -- the sales is going to be RMB 100 million for Yu Yu. I can surely inform the market. We have already understand the grid methodology for the proprietary IP operations."
-- Guofu Ye, Founder, Chairman and CEO

Proprietary IP not only contributes to gross margin improvement, but also strengthens brand differentiation and fortifies control over the value chain.

Overseas expansion outpaces sector with disciplined store rollout and localization

Overseas revenue surged 29% year-over-year to RMB 1.94 billion, with North America and Europe achieving mid-single-digit same-store sales growth. U.S. store-level profit margins remained flat during the first half of this year despite higher tariffs. Net new store additions in overseas markets reached 94, with management targeting moderated growth, aiming for over 500 new stores for the full year 2025 and a focus on higher-quality, larger format stores concentrated in key regional clusters.

"For U.S, the net addition we have for this year would be 80, 8-0, much lower than what we have last year, but we hope we can continue to improve the quality and efficiency of the larger stores. Some of the new store efficiency is much higher than the existing stores."
-- Guofu Ye, Founder, Chairman and CEO

This disciplined approach to overseas expansion prioritizes store quality and operational efficiency, positioning MINISO for sustainable international growth.

Looking Ahead

Management issued guidance for full-year fiscal 2025 revenue to exceed RMB 21 billion and gross merchandise value (GMV) over RMB 38 billion. Adjusted operating profit is projected to be in the RMB 3.65 billion to RMB 3.85 billion range for fiscal 2025, with ongoing improvements in operating margin. The company reaffirmed its commitment to capital returns, targeting a 50% payout of annual adjusted net profit as dividends and the continuation of substantial share repurchases, including up to 10% of outstanding shares as authorized by the Annual General Meeting held in June 2025.