TH International Q1 revenue falls 15% on store closures
TH International Q1 revenue falls 15% on store closures
Overview
Coffee chain operator's Q1 revenue fell 14.6% yr/yr on store closures, lower same-store sales
Adjusted EPS for Q1 remained negative
Company grew loyalty club membership 43% yr/yr, topping 35.9 mln members
Outlook
Company expects to resume net new store openings starting from Q2 2026
Company says proposed financing will fund further expansion of store network
Result Drivers
STORE CLOSURES AND LOWER SALES - Revenue decline was primarily due to closures of underperforming stores and a 12.4% drop in same-store sales for company owned and operated stores
FRANCHISE EXPANSION - Other revenues rose 7.7% yr/yr, mainly due to an increase in franchised stores
COST OPTIMIZATION - Marketing expenses fell 43.7% yr/yr, reflecting cost optimization measures
Company press release: ID:nGNX9yDsB0
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q1 Revenue |
| RMB 256.74 mln |
|
Q1 Adjusted EPS |
| -RMB 2.04 |
|
Q1 EPS |
| -RMB 3.38 |
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)