The company reported 18.9% year-on-year revenue growth to RMB 4.427 billion for Q1 2025, maintaining its top-line expansion. However, investors reacted strongly to the 4.86% decline in adjusted net profit to RMB 587 million, which fell short of market expectations. This profit contraction suggests Miniso may be facing margin compression despite continued sales growth.
The severe market reaction highlights growing investor skepticism about companies prioritizing revenue expansion over profitability. As market sentiment shifts, Miniso’s premium valuation appears increasingly vulnerable. The sell-off reflects broader concerns about China’s consumer spending environment and intensifying competition in the value retail sector.
Analysts suggest Miniso will need to demonstrate improved cost controls and margin stability in upcoming quarters to rebuild investor confidence. The company may need to adjust its growth strategy to better balance expansion with profitability. Market participants will be watching closely for signs of operational improvement when Miniso reports its next earnings results.
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