Shares of Miniso declined Monday after it swung to a loss in the second quarter.

The stock plunged as much as 13% to 18.58 Hong Kong dollars, equivalent to US$2.37, before paring losses to 11% at midday, still on track for its largest one-day percentage drop since May 2025.

The Chinese lifestyle retailer's American depositary receipts fell 4.4% on Friday after the announcement.

Miniso reported a net loss of 289.2 million yuan, equivalent to US$43 million, for the three months ended June, compared with net profit of 489.7 million yuan a year ago. That was despite a 17% jump in quarterly revenue.

Fair-value changes in an investment, increased selling and distribution expenses, and foreign-exchange losses pressured the bottom line, the Guangzhou-based company said late Friday.

Analysts cautioned that Miniso's margins are also likely to face short-term pressure.

DBS Group Research noted the company's guidance for a larger decline in full-year adjusted operating margin, citing comments from an earnings briefing. Miniso's adjusted operating margin fell to 12.6% from 17.2% in the second quarter.

Still, Miniso is likely targeting 2027 as an inflection point, DBS analysts wrote in a note. Store upgrades, proprietary intellectual-property expansion and a shift in its overseas business's focus toward profitability over expansion should help boost margins, they said.