MINISO Group Holding Limited (MNSO) Q4 2025 Earnings Call Transcript

MINISO Group (MNSO) reported robust Q4 2025 results, with overall GMV climbing 21% and revenue increasing 23.1%, both exceeding expectations. The company achieved its first positive same-store sales growth in four quarters, propelled by accelerated expansion across all segments, notably MINISO brand's 20% revenue growth and TOP TOY's 87% surge. Profitability also improved, with gross margin reaching 44.3% and adjusted operating profit rising 8.5% to RMB 850 million, driven by increased overseas revenue contribution and TOP TOY margin optimization, with further operating margin improvement anticipated in H2.

Analysis

MINISO Group (MNSO) reported a robust Q4 2025, with key metrics exceeding both guidance and expectations. The company's revenue grew 23.1% and GMV increased 21%, marking an acceleration from the prior quarter. A significant operational highlight is the achievement of positive same-store sales growth for the first time in four consecutive quarters, signaling a potential inflection point in underlying consumer demand. Growth was broad-based, with the core MINISO brand revenue up 20% and the emerging TOP TOY brand delivering an exceptional 87% revenue surge, underscoring its role as a primary growth engine. Profitability also showed marked improvement; the gross margin expanded to 44.3%, driven by a favorable mix shift towards higher-margin overseas revenue and margin optimization at TOP TOY. Although adjusted operating profit growth of 8.5% to RMB 850 million was more modest than revenue growth, the adjusted operating margin of 17.2% improved sequentially from Q1, with management providing positive guidance for further margin expansion in the second half of the year fueled by seasonal sales.

Key Decisions for Investors

• The strong top-line beat, coupled with the return to positive same-store sales growth, validates the company's IP and large-store strategies, supporting a bullish outlook on the stock.
• Investors should closely monitor the high-growth TOP TOY segment, as its 87% revenue surge and ongoing margin optimization are critical catalysts for future earnings surprises.
• Given the company's guidance for continued operating margin improvement in H2, it may be prudent to assess positions for potential earnings upside during the upcoming peak sales season.
• Focus on the sustainability of the same-store sales recovery in the coming quarters, as this remains a key indicator of the core business's health and long-term value.