Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
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| For Southeast Asia countries such as Indonesia, India, the Philippines and Thailand, same-store sales numbers were better than per store sales numbers |
| On a quarter-over-quarter basis, our margin profile improved because we enjoyed a significant foreign exchange gain in June quarter |
| And number two, GP margin in China increased by low single-digit percentage points, thanks to our continuous growth of merchandise GP margin and a better control of promotional discounts |
| In addition to that, GP margin in overseas markets in this quarter also benefited from increasing revenue contribution from our directly operated markets, which contributed for 6% of revenue |
| Number one, GP margin in overseas market increased as we made meaningful progress in optimizing our product structure and saw revenue contribution from IP products increased from less than 30% to more than 40% |
| So compared to last year, one year ago, it was just breakeven, so it's a significant improvement |
| Looking forward into the December quarter, we expect our sales continue to grow strongly on a year-over-year basis driven by better store level performance and store network expansion |
| I'd say its margin profile has been improving in this quarter |
| Given we are a little bit lag behind in the first half, but we still target to achieve the guidance for the full year, so can you share with us what -- where do we see the improvement? And how should we think about the focus for expansion overseas next year? And thirdly, on the product, so we have a very good progress on IP and fragrance products, et cetera |
| And for overseas market, as we mentioned on our prepared remarks, the same-store sales has recovered to about 94% as a whole in overseas market, among which top 20 overseas market has also -- has positive same-store sales growth |
| And the best part, personally, I think that it's accelerating from 120% year-over-year growth from the June quarter |
| I would say everything is evolving very fast and is very encouraging |
| But in general, as we promised, we are confident that the total S&D expenses is controllable because overall, we are still enjoying a significant operating leverage |
| Our business performance is positively related to traffic |
| During the past year or so, our ASP has improved a lot where we had a stabilized cross-selling rate |
| Quarterly revenue achieved a 46% year-over-year increase with an about 30% year-over-year strong growth in GMV per store and a 70% year-over-year growth in average store count |
| We'd expect that with the implementation of the superstore strategy, it will strongly promote overseas performance and enhance the global influence of the MINISO brand |
| Major overseas markets maintained rapid growth momentum, including a 160% growth in North America, a 60% growth in Latin America and a 50% growth in Europe |
| Firstly, we are encouraged that GMV per store in overseas markets during September quarter recovered to 103% of 2019 level and achieving 27% year-over-year increase |
| But if you look at the comparable sales, our same-store sales have recovered to 93%, and which is very encouraging to us |
| Among these three categories, flush toy has always been one of our best sellers in overseas markets, and we shall continuously enhance our leadership position |
| I'd say, hopefully, we can see an improvement in the December quarter compared to the past two quarters |
| Our newly opened [indiscernible] all-day mall stores and [indiscernible] stores is getting positive response from customers |
| So our key strategy here in blind box is that by cooperating with this established IP licenses, we are gaining market share |
| Meanwhile, by leveraging our capability in capturing customer insights in our fast supply chain, our highly refreshed assortment and continuous innovations have created huge sales opportunities |
| Meanwhile, with more favorable margin profile of IP products, we are positioned well to leverage their huge fans base to grow both our top line and bottom line |
| Overall, GMV per store in overseas markets increased by over 27% year-over-year and average store count increased by about 13% |
| On a per stock basis, average transaction volume increased by over 70%, and average transaction value increased by more than 3% year-over-year |
| Our overall performance once again reached new highs during this quarter as both of our revenue and profitability maintains high quality growth based on the breakthroughs we achieved in previous quarters |
| Total revenue hit RMB3.79 billion and set a new record, increasing by 37% year-over-year |
| Statement |
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| Entering into the fourth quarter of calendar year 2023, some investors worried about the weak domestic consumption environment |
| At this moment, I cannot comment too much because for the first half of this year, the distributor market as a whole, it's net new stores was apparently fewer than our expectation |
| So the overseas distributor revenue this quarter growth is lagging behind the direct sales growth, partially because of the slower store opening in the first half of the year |
| And you are right that in the September quarter, the exclusive products of TOP TOY decreased a little bit |
| And apparently, its GP margin -- merchandise GP margins lower than IP products and toys |
| So if you look at year-to-date, the GMV per store in China recovered to 85% of pre-COVID level because we have opened a lot of new stores in lower-tier cities in China, which has some dilution to our average store performance |
| What's the management's target on profitability this year for TOP TOY business? And also what's the strategies going forward? I saw that in September quarter, the own brands' mix has been a little bit lower than June quarter |
| To be frank, last year, TOP TOY, it was loss-making in CY '22, right? If you can remember, its net loss margin is nearly about more than 20% |
| And if you look at the bottom line, hopefully, the net loss for TOP TOY this year will be like 1% or 2%, something like that |
| So we paused a little bit of our store expansion plan |
| Although only 30 square meters, its total sales and sales per square meters on its first phase far exceeds our expectations |
| So we have enough patience to wait this business to get more mature |
| No weaknesses was noticed |
| While the numbers of store is growing rapidly, we continue on a focus on unique economics of our operating stores, driven by the healthy closure rate of MINISO stores of only 1.4% in this quarter, below history average |
| As we are executing our brand upgrade strategy both in China and overseas markets, we expect to see marketing expenses increase a little bit for a while, but this is totally controllable |
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