MINISO Group Holding Limited (NYSE: MNSO) saw its stock price plummet 18.79% in pre-market trading on Friday following the release of its first-quarter financial results that fell short of analysts' expectations. The global value retailer, known for its trendy lifestyle products, reported disappointing earnings that have raised concerns among investors about the company's growth trajectory.
For the first quarter, MINISO reported adjusted earnings per share of 1.88 Renminbi ($0.26), missing the FactSet consensus estimate of 1.97 Renminbi. This represents a year-over-year decline from 1.96 Renminbi ($0.27) in the same quarter last year. Revenue for the period came in at 4.43 billion Renminbi ($610.06 million), slightly below the projected 4.37 billion Renminbi, despite showing an 18.9% year-over-year increase.
The earnings miss and profit decline have sparked investor concerns about MINISO's ability to maintain its growth momentum in the current economic climate. While the company reported revenue growth and a 21.1% rise in gross profit, the market's reaction suggests that investors were expecting stronger performance. The sharp pre-market selloff reflects the market's disappointment and uncertainty about MINISO's future prospects, particularly in light of potential challenges in both domestic and international markets.
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