Q2 2026 Luckin Coffee Inc Earnings Call Transcript
Key Points
- Total net revenues grew 29% year-over-year to RMB15.9 billion, driven by a 30% increase in GMV.
- Global store count surpassed 36,000, with over 5,000 net new stores opened in the first half of 2026, maintaining industry-leading expansion pace.
- Operating income resumed year-over-year growth, increasing 22% to RMB2.1 billion, with a pre-margin of 13.4%, indicating profitability recovery.
- Average monthly transacting customers reached a record high of over 110 million, up 23% year-over-year, with cumulative customers approaching 500 million.
- Product innovation success, including the Little Butter Americano series surpassing 500 million cumulative cups sold and the new Americano flagship selling over 10 million cups in its first week.
- Delivery expenses as a percentage of total net revenues decreased to 10% from 14% year-over-year, improving operational efficiency.
- Strong cash position of RMB10.9 billion and robust operating cash flow of RMB2.6 billion in the quarter, supporting continued investment and shareholder returns.
- Same-store sales for self-operated stores declined 5.3% year-over-year in the second quarter, impacted by a high comparison base from elevated delivery subsidies.
- Cost of materials as a percentage of total net revenues increased to 39% from 37% year-over-year, due to lower average selling price and higher raw material costs.
- Store rental and other operating costs as a percentage of total net revenues rose to 27% from 22% year-over-year, driven by higher payroll and rental expenses from expansion.
- Sales and marketing expenses increased 56% year-over-year, due to higher advertising, promotion, and commission fees to delivery and live stream platforms.
- Net profit margin declined to 9.4% from 10.4% year-over-year, reflecting margin pressure despite revenue growth.
- The high base effect from delivery subsidies is expected to persist into the third quarter, potentially continuing to pressure same-store sales growth.
Ladies and gentlemen, welcome to Luckin Coffee's second-quarter 2026 earnings conference call. (Operator Instructions) Please be advised that today's call is being recorded.
Now I'd like to turn the call over to Ms. Nancy Song, Head of Investor Relations for Luckin Coffee. Nancy, please go ahead.
Thank you, and hello, everyone. Welcome to Luckin Coffee second-quarter 2026 earnings conference call. We announced our financial results earlier today before the US market opens. The earnings release is now available on our IR website and via Newswire services.
Today, you will hear from Dr. Guo Jinyi, Co-Founder and CEO of Luckin Coffee, who will share our strategic overview of our business. Then Ms. An Jing, our CFO, will discuss our financial results in greater detail. Afterwards, we'll open up the call for questions.
During today's call, we will be making some forward-looking statements regarding future events and expectations. Any statements that are not historical facts,
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