Categories Earnings, Retail

Luckin Coffee delivers better-than-expected Q3 results

Luckin Coffee Inc. (NASDAQ: LK) beat revenue estimates and reported a narrower-than-expected loss for the third quarter of 2019. Shares jumped over 8% in premarket hours on Wednesday.   

Total revenue of RMB1,541.6 million ($215.7 million) was up 540.2% from the same period last year and above estimates of $211.4 million.  

Net loss was RMB531.9 million ($74.4 million) compared to RMB484.9 million in the prior-year period. Adjusted net loss was RMB491.1 million ($68.7 million).

Net loss per ADS was RMB2.24 ($0.32) compared to a loss of RMB3.60 last year. Adjusted net loss per ADS was RMB2.08 ($0.32).

Luckin Coffee Q3 operating statistics

Total revenues from products rose 557.6% year-over-year to RMB1,493.2 million ($208.9 million), driven by increases in the number of transacting customers, the effective selling price and the number of products sold per transacting customer.  

Revenues from freshly-brewed drinks amounted to RMB1,145.4 million ($160.2 million) while revenues from other products totaled RMB347.8 million ($48.7 million).

Average monthly total items sold in the quarter were 44.2 million, up 470.1% from the year-ago period. Average total net revenues from products per store increased 79.5% year-over-year.

Also see: Luckin Coffee Q3 2019 Earnings Preview

Cumulative number of transacting customers increased 413.4% year-over-year to 30.7 million. The company acquired 7.9 million new transacting customers during the quarter.

Average monthly transacting customers were 9.3 million, reflecting a growth of 397.5% from the prior-year quarter. Total number of stores at quarter-end were 3,680 stores, up 209.5% from last year.

For Q4 2019, the company expects net revenues from products to be between RMB2.1 billion and RMB2.2 billion. 

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