Investment Rating - The report maintains a "Buy" rating for Miniso, with a 12-month price target of $23.10 for ADR and HK$45.00 for H-share, indicating an upside potential of 34.5% and 33.7% respectively [14][17]. Core Insights - Miniso is expected to experience sequential sales growth acceleration, with management confident in margin improvement and a peak in DTC-related expenses in the first half of the year [1][2]. - Same-store sales growth (SSSG) turned positive in May for Miniso China, and positive trends were also observed in the US and other overseas markets [1][7]. - The company plans to enhance its product offerings, focusing on both intellectual property (IP) products and value-for-money lifestyle products, with localized designs for overseas markets [1][10]. - Management aims to expand to over 1,000 stores in the US market, targeting a 20% operating profit margin in the mid to long term, despite potential short-term volatility [1][11]. Summary by Sections Sales Growth and Guidance - For Q2 2025, Miniso China is expected to achieve low teens percentage sales growth, while Miniso Overseas and Top Toy are projected to grow by 25%-30% and 70%-80% year-over-year respectively [8]. - If the SSSG recovery trend continues, operating profits are likely to turn positive in Q3, with full-year adjusted operating profits targeted at RMB 3.6 billion to RMB 3.8 billion [8]. Product Strategy - The company is enhancing its IP product quality and focusing on localized designs for international markets, while also improving the merchandising of value-for-money products [10][12]. - A dedicated zone for top-selling products has been added to increase conversion rates, and inventory management will be prioritized to avoid stockouts of best-sellers [11]. Market Performance - Year-to-date, Miniso China's SSSG has shown improvement, with positive trends in the US market and other overseas markets noted in April and May [7][11]. - The US market has seen the opening of approximately 20 new stores, primarily in plaza locations, achieving double-digit operating profit margins despite being in a low season [11]. Long-term Outlook - Miniso is positioned to become a leading global IP retailer, with catalysts for share price growth including accelerated store expansion, improved SSSG, and higher contributions from IP products [14]. - The market currently underappreciates Miniso's potential adjusted net income compound annual growth rate (CAGR) of nearly 20% from 2024 to 2026, excluding contributions from Yonghui [14].

Core Insights - Dollar General Corporation (DG) reported strong first-quarter fiscal 2025 results, with both revenue and earnings exceeding expectations and showing year-over-year growth [1][9] - The company raised its full-year guidance, indicating continued strength in its business operations [9] Financial Performance - Quarterly earnings per share (EPS) were $1.78, surpassing the Zacks Consensus Estimate of $1.47, and increased by 7.9% from $1.65 in the prior-year period [2][9] - Net sales reached $10,436 million, a 5.3% increase year over year, exceeding the Zacks Consensus Estimate of $10,287 million, driven by new store openings and same-store sales growth [2][9] - Same-store sales grew by 2.4%, with a 2.7% increase in average transaction amount, although customer traffic declined by 0.3% [3] Category Performance - The consumables category saw a significant increase of 5.2%, reaching $8.64 billion, while seasonal category sales totaled $1.02 billion, up 6.2% [4] - Home products sales grew by 5.9% to $507.2 million, and apparel sales increased by 3.2% to $269.2 million [4] Margin Insights - Gross margin expanded by 78 basis points to 31%, attributed to higher inventory markups and lower shrinkage, partially offset by higher markdowns [5] - Selling, general and administrative (SG&A) expenses as a percentage of net sales increased by 77 basis points to 25.4%, primarily due to higher retail labor and incentive compensation [6] - Operating profit increased by 5.5% year over year to $576.1 million [6] Expansion Plans - During the quarter, Dollar General opened 156 new stores and remodeled 668 locations through Project Elevate, along with 559 stores through Project Renovate [7] - For fiscal 2025, the company plans to execute 4,885 real estate projects, including the opening of 575 stores in the U.S. and up to 15 stores in Mexico [8] Future Guidance - Dollar General now expects net sales growth of 3.7% to 4.7%, up from the previous outlook of 3.4% to 4.4%, with same-store sales projected to increase by 1.5% to 2.5% [11] - EPS is anticipated to be between $5.20 and $5.80, compared to the previous estimate of approximately $5.10 to $5.80 [11] Financial Snapshot - The company ended the quarter with cash and cash equivalents of $850 million, long-term obligations of $5.72 billion, and total shareholders' equity of $7.70 billion [10] - Capital expenditures during the fiscal first quarter amounted to $290.9 million, with an anticipated range of $1.3 billion to $1.4 billion for fiscal 2025 [10]

MAY 8, 2025 LEGAL DISCLAIMER This earnings supplement contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to the future financial and operating results of the Company, estimates of future EBITDA, the timing and performance of new store openings, future reductions in cost of capital and leverage ratio, our ability to conduct future accretive acquisitions and our pipeline of new store locations. Forward-looking statement ...