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MINISO Shares Tumble Over 11% on Disappointing Earnings, Weak Overseas Performance
Shares of lifestyle retailer MINISO (9896.HK) plummeted on Monday, dropping 11.4% to close at HK$18.83 in Hong Kong. The sharp sell-off followed the company's disappointing second-quarter earnings report released last week, which fell short of market forecasts and revealed a significant deterioration in its overseas business.
Earnings Miss Sparks Sell-Off
MINISO's financial results for the second quarter failed to meet analyst expectations. The company reported earnings per share (EPS) of RMB 1.76, well below the consensus estimate of RMB 2.12. Revenue also came in light at approximately RMB 5.75 billion, compared to forecasts of around RMB 5.81 billion.
The negative investor reaction was compounded by a broader market downturn, as Hong Kong's Hang Seng Index fell 0.9% during the session, providing a bearish backdrop for the stock.
AdInternational Operations Under Pressure
The most significant concern for investors was the steep decline in the company's international segment. CEO Guofu Ye acknowledged the weakness in the earnings release, stating that "overseas performance fell short of our expectation."
Highlighting the severity of the issue, the company disclosed that the profit contribution from its international operations had collapsed. After accounting for 35-40% of profits in 2023, the overseas business contributed just 10-15% in the first half of 2026, signaling a major challenge to what was previously a key growth driver.
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