How a Superstore Strategy Fueled MINISO’s 20% Stock Surge
Shares of MINISO Group (NYSE: MNSO) surged over 20% in the trading session following its second quarter 2025 earnings report, a dramatic move that signaled more than just a positive quarter. The market’s enthusiastic response delivered a clear verdict on the company's evolving business strategy.
The company’s recent performance is the result of a powerful two-part strategic formula: an aggressive international expansion centered on larger store formats and a highly profitable product model built on popular intellectual property.
Together, these pillars are successfully transforming MINISO from a China-centric value retailer into a dynamic global growth story within the retail sector, fundamentally reshaping MINISO’s investment case for the future.
What MINISO's Latest Report Reveals
The market's reaction was grounded in a set of financial results that provided a clear picture of accelerating momentum for the quarter that ended June 30, 2025. The data reveals a significant strategic shift, with international operations clearly taking the lead as the company's primary growth engine.
- Robust Top-Line Growth: Total revenue climbed 23.1% year-over-year to approximately $695 million (RMB 4.97 billion), surpassing the high end of the company's own guidance and signaling strong operational execution.
- The International Growth Engine: The report highlighted a crucial divergence in regional performance. While revenue from the MINISO brand in mainland China grew a respectable 13.6%, revenue from overseas markets jumped by an impressive 28.6%.
- The TOP TOY Catalyst: The company's pop culture and toy division, TOP TOY, continued its explosive trajectory, with revenue growing a record 87.0% year-over-year, positioning it as a critical growth accelerator.
- Core Retail Health: Group-level Same-Store Sales Growth (SSSG) turned positive for the first time in a year, a vital metric indicating that existing stores are generating more revenue and that the brand's appeal is strengthening.
- Impressive Profitability: The group-level gross margin remained strong at 44.3%. This translated to the bottom line, with adjusted net profit increasing 10.6% to about $96.7 million (RMB 691.5 million) and adjusted diluted earnings per American Depository Share (ADS) rising 12.0%.
MINISO's Superstore Blueprint Goes Global
These strong international results directly result from a deliberate shift in the company's global retail strategy. MINISO is moving beyond its traditional small-format stores to invest in larger superstores and flagships in prime international locations, including a high-profile Times Square store.
This approach focuses on creating an enhanced, immersive customer experience to build a powerful brand presence in key Western markets. This marks a strategic evolution from the company's historically asset-light partner model, and the strong financial returns validate the higher investment.
The data confirms this strategic focus. The company's overseas network has reached 3,307 MINISO stores, with nearly 75% of its net new locations opening outside of mainland China in the past year. MINISO gains greater control over its brand image and merchandising by investing in these larger, often directly-operated stores.
According to company management, this strategy successfully unleashes higher sales potential and optimizes profit margins, building a foundation for sustainable long-term expansion.
How Sanrio and Disney Fuel MINISO's Profits
Complementing its expanding physical footprint is a sophisticated product strategy that directly fuels its high profitability. The company has masterfully executed what it calls interest-based consumption, which involves tapping into consumer passions and fandoms by collaborating with globally recognized intellectual property (IP) holders.
Popular collections featuring characters from Sanrio, Disney, Peanuts, and Barbie have become major draws for the brand.
This IP-centric model is a primary driver behind the substantial 44.3% gross margin. These co-branded products command higher price points and create a unique treasure hunt experience that encourages repeat visits.
This strategy’s success was further validated when the TOP TOY brand recently completed a strategic financing round led by global investment firm Temasek, valuing the division at approximately $1.28 billion (HKD $10 billion).
This investment provides both capital and a powerful endorsement of MINISO’s IP-driven approach, elevating it far above traditional value retailers and fostering a loyal global customer base.
Why Wall Street Is Turning Bullish On MNSO
The strength of this two-pronged strategy has not gone unnoticed by the financial community. Following the earnings release, Jefferies upgraded the stock to a Buy rating, and Bank of America raised its rating to Neutral.
This signals that analysts are recognizing the sustainability of this new growth model. Adding to this confidence, management provided an optimistic full-year outlook, projecting revenue growth of at least 25%.
The key takeaway for investors is the powerful collaboration at play. The new superstores provide the perfect stage, and the high-margin IP products are the star performers. This combination creates a scalable and profitable formula for global expansion that has been proven effective.
The recent stock surge is not a temporary reaction to a single good quarter. It represents the market pricing in a new reality: MINISO has a clear international playbook, is executing that plan effectively, and is solidifying its position as a compelling global growth stock.
Learn more about MNSO
