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Atour Lifestyle Q1 Earnings Miss Estimates, Revenues Surpass
ATATAtour Lifestyle (ATAT) ZACKS·2025-05-23 13:01

Core Viewpoint - Atour Lifestyle Holdings Limited (ATAT) reported mixed first-quarter 2025 results, with earnings missing estimates while net revenues exceeded expectations, indicating a solid performance in a challenging market environment [1][4]. Financial Performance - The company reported earnings per share (EPS) of 24 cents, missing the Zacks Consensus Estimate of 32 cents by 25%, and down from 26 cents in the prior-year quarter [4]. - Net revenues reached 263million,surpassingtheconsensusmarkof263 million, surpassing the consensus mark of 259 million by 1.4%, and increased by 6.5% year over year [4]. - The Manachised hotels segment saw revenues increase by 23.5% year over year to 142million,withthetotalnumberofhotelsrisingto1,702from1,271[5].−RevenuesfromtheRetailsegmentgrewsignificantlyby66.5142 million, with the total number of hotels rising to 1,702 from 1,271 [5]. - Revenues from the Retail segment grew significantly by 66.5% year over year to 96 million, driven by effective product innovation [6]. - Total operating costs and expenses rose to 216millionfrom216 million from 160 million in the prior-year period, with hotel operating costs increasing to 101million[7].OperationalHighlights−Thecompanyopened121newhotelsduringthequarter,expandingitsoperationalportfolioto1,727properties[2].−AtourLifestyleintroducedAtour3.6andlaunchedAtourLight3.3,aimingtoreach1,000AtourLighthotels[2].−Sellingandmarketingexpensesincreasedto101 million [7]. Operational Highlights - The company opened 121 new hotels during the quarter, expanding its operational portfolio to 1,727 properties [2]. - Atour Lifestyle introduced Atour 3.6 and launched Atour Light 3.3, aiming to reach 1,000 Atour Light hotels [2]. - Selling and marketing expenses increased to 39 million from 24million,reflectingenhancedinvestmentinbrandrecognition[8].CashPositionandOutlook−AsofMarch31,2025,cashandcashequivalentswere24 million, reflecting enhanced investment in brand recognition [8]. Cash Position and Outlook - As of March 31, 2025, cash and cash equivalents were 434 million, down from 496millionattheendof2024,whiletotaloutstandingborrowingsincreasedto496 million at the end of 2024, while total outstanding borrowings increased to 10 million from $8.5 million [9]. - The company expects net revenues to grow by 25-30% year over year in 2025 [11].