Asian goods retailer Miniso (MNSO 6.35%) was a popular item for investors this week. Over the five days the market was open, the Chinese company's U.S. shares climbed almost 16% higher, according to data compiled by S&P Global Market Intelligence. One specific event provided the catalyst for this leap.
Double-digit improvements on key line items in the fourth quarter
That event was the release of Miniso's fourth-quarter earnings report, which featured growth numbers that were well in the double digits.
Revenue, for one, rose 54% year over year to hit 3.84 billion yuan ($534 million). Another big jumper was, happily for the company and its shareholders, non-IFRS (adjusted) net income. This also improved dramatically, advancing by 77% to just under 661 million yuan ($92 million).
That's typical for the company, which has boasted net margins in the mid-teen percentages in its most recently reported quarters.
The increases were due in no small part to an aggressive expansion policy, which saw the specialty retailer boost its worldwide store count by 973 to reach a total of 6,413 at the end of 2023. The most dramatic increase in count came in stores operated by third parties in Miniso's native market of China.
It seems that non-Chinese consumers are catching the Miniso bug. In the earnings report, revenue from company-operated stores outside of its home country has risen by 80% for three quarters in a row.
Aggressive store-count growth is part of the strategy
Although Miniso did not proffer specific guidance for its current quarter or the entirety of 2024, it did state that it plans to open 900 to 1,100 stores annually from this year through 2028. It also aims to post a compound annual growth rate of at least 20% across that stretch of time.
