Shares of Miniso Group (NYSE:MNSO) were climbing today after the Chinese retailer issued a promising update on recent store openings. As of 3:07 p.m. EST on Wednesday, the stock was up 11.7%.
In a press release this morning, the company said it had opened its 100th store since its IPO last month, a blistering expansion rate at a time when much of the global retail sector is still reeling from the COVID-19 pandemic. Miniso has expanded rapidly, not just in China -- where it opened 54 stores on Oct. 1 ahead of the Golden Week shopping festival -- but also in Europe. It recently opened stores in Paris and across Spain, where it now has 16 locations after opening four this month.
Vincent Huang, Miniso's vice president for international business, said: "We aim to open even more new stores across Europe in the near future. We look forward to welcoming customers in London, Hungary, Iceland and Italy soon, pending the course of the pandemic."
With an emphasis on fast rotation of new products and low prices, Miniso could have the right formula to succeed in a post-pandemic environment. Backed by Tencent Holdings, the company has drawn comparisons to the Japanese retailer Uniqlo, known for its fast-fashion model.
With today's gains, the stock is now about even with its $20 IPO price, showing the market is still evaluating this unique discretionary retail stock . Miniso's recent financial results have been hurt by the coronavirus pandemic as revenue declined in the fiscal year ending June 30. But with more than 4,200 stores around the world, global growth ambitions, and solid profits, the company is a unique opportunity that retail investors will want to keep an eye on.