--- title: "MINISO (Minutes): Short-term focus on improving the efficiency of directly operated stores" description: "Below is the earnings call minutes for Miniso FY25 Q1. For the earnings interpretation, please refer to "Miniso: Miniso Plunges? Without IP Soul, It Can't Replicate the Next 'Pop Mart'"" type: "topic" locale: "en" url: "https://longbridge.com/en/topics/30009163.md" published_at: "2025-05-23T14:49:45.000Z" author: "[Dolphin Research](https://longbridge.com/en/news/dolphin.md)" --- # MINISO (Minutes): Short-term focus on improving the efficiency of directly operated stores $Miniso(MNSO.US) $MNSO(09896.HK) MINISO (Minutes): Short-term focus on improving direct store efficiency **Below is the earnings call minutes for MINISO FY25 Q1. For earnings analysis, please refer to** [**MINISO: MINISO Plunge? No IP Soul, Can't Replicate the Next "Pop Mart"**](https://longportapp.cn/zh-CN/topics/30003867)**.** **1\. Key Earnings Highlights** 1\. Capital Allocation (1) Dividends: The final dividend of RMB 740 million for FY24 was distributed in April 2025. (2) Share Repurchase: Repurchased approximately RMB 260 million (8 million shares, 0.7% of total shares) in 2025. 2\. Outlook (1) Revenue: Due to the base effect in FY24, H2 growth is expected to accelerate. (2) Profit Margin: Long-term target operating margin is 20%, with short-term focus on improving direct store efficiency. ![0](https://pub.pbkrs.com/uploads/2025/385c0889e9f94dd41a0ff8965cae888f?x-oss-process=style/lg) **2\. Detailed Earnings Call Content** **2.1 Key Management Statements** 1\. China Market Strategy (1) Same-Store Optimization: Cross-department collaboration and data-driven inventory and matching strategies narrowed same-store declines. (2) Large Store Expansion: Opened 5 new large stores in Q1 (total 8, with 50 in preparation) and 43 flagship stores (150 in preparation). New store efficiency was 27% higher than FY24. (3) Store Upgrades: Renovated/expanded existing stores (average size increased to ~300 sqm from ~200 sqm) and closed underperforming stores (monthly sales < RMB 200k). 2\. Overseas Expansion: Focused on 24 U.S. states (covering 76% of population), cluster-based expansion, localized supply chain, and inventory to mitigate tariff impacts. 3\. TOP TOY's proprietary products exceeded 40%, driving margin improvement and brand differentiation. **2.2 Q&A** **Q: What drove the improvement in MINISO's China same-store performance? Was it due to store format changes or shifts in city-tier metrics?** A: In Q1, same-store performance in China saw a mid-single-digit decline, a significant improvement from Q3/Q4 2024. As of yesterday, the decline narrowed to low-single digits, with potential for positive growth in 2025. Despite weak consumer sentiment, MINISO's resilience is evident. Further analysis shows flat average spending per customer, with declines driven by low-single-digit foot traffic drops. However, both metrics improved from Q2. Regionally, Tier 1/2 cities in East/South China showed strong improvement, with some achieving positive growth, while North China (especially Northeast/Northwest) lagged. The company is confident in nearing breakeven by mid-year. Since 2025, franchise ROI has also improved significantly. **Q: What is the payback period for franchisees? Any guidance on store expansion plans?** A: In Q1, same-store performance was strong, with double-digit growth achievable even after adjustments, especially for stores open <12 months. The company is confident in double-digit growth for 2025 while optimizing its store network. **Q: How is MINISO addressing U.S. tariff volatility? Any supply chain adjustments?** A: Compared to 2018, MINISO has built U.S. inventory over the past year, which can support 3-6 months of sales. The company is diversifying its supply chain beyond China, with 40% of U.S. products directly sourced in Q1. Tax planning tools are also used to mitigate tariff impacts. **Q: How will YH impact MINISO's profits and growth from Q2 2025? What’s the progress on YH’s adjusted super stores?** A: YH will be consolidated from Q2 2025. YH aims to reduce losses by improving efficiency and margins. As of May 9, 78 stores were adjusted, with 250-350 closures planned. Adjusted stores performed well, with the top 40 generating over RMB 100 million in profit. **Q: What are the April-May same-store trends overseas, especially in the U.S.? Any strategies to improve U.S. performance?** A: Mexico and the U.S. showed improvement from April. MINISO is focusing on 24 U.S. states (76% population) for scale effects and localized product development to boost same-store performance. **Q: How is MINISO differentiating its IP strategy amid fierce competition?** A: MINISO continues partnering with top global IPs while developing proprietary IPs. Some proprietary IPs already generate over RMB 100 million in sales, with potential for RMB 400-500 million in the next 3 years. **Q: What is MINISO China’s current gross margin? How to balance third-party product margins?** A: Q1 gross margin was stable YoY. Third-party products are limited to specific categories (e.g., toys) to drive foot traffic without compromising margins. **Q: Are unsold third-party products returned or bought out?** A: Pilot programs are in place. With 4,000 China stores, MINISO can manage inventory risks effectively. **Q: With 111 net store closures in Q1, will the 200-300 net store opening target for 2025 change?** A: The target may be adjusted dynamically, but double-digit growth is still achievable even if the net opening target isn’t met. **Q: As long as China revenue targets are met, does it matter if growth comes from same-store or new stores?** A: Yes, but MINISO prefers more growth to come from same-store performance in 2025. **Risk Disclosure and Disclaimer:**[**Dolphin Research Disclaimer and General Disclosures**](https://support.longbridge.global/topics/misc/dolphin-disclaimer) ### Related Stocks - [MNSO.US - Miniso](https://longbridge.com/en/quote/MNSO.US.md) - [09896.HK - MNSO](https://longbridge.com/en/quote/09896.HK.md) --- > **Disclaimer**: This article is for reference only and does not constitute any investment advice.