Luckin Coffee (NASDAQ: LK) shares continued to gain on Monday morning following its quarterly financial results last week. Shares edged higher by 6.3% during early morning trading hours.
Last week, Luckin reported Luckin reported earnings loss of USD 0.32 per share on revenue of USD 208.9 Million. Analysts anticipated earnings loss of USD 0.38 per share on revenue of USD 208.9 Million. Shares rose by 15% last Wednesday following the earnings beat.
During its third quarter, Luckin reported that net losses continued to widen from RMB 484.9 Million in the third quarter of 2018 to RMB 531.9 Million (USD 74.4 Million). However, revenue increased by 557.6% year-over-year, driven by a 470.1% increase in average monthly total items sold of 44.2 Million.
Despite the losses, Luckin’s earnings loss was much better than analysts had anticipated during the quarter, leading investors and analysts to believe that losses were cutting down while revenue was exponentially gaining.
Luckin also rapidly expanded during the quarter, increasing its store count by 209.5% to 3,680 stores. Average monthly transacting customers increased by 397.5% to 9.3 million at the end of the quarter, while average total net revenues from products per store were USD 62,900, increasing by 79.5% year-over-year.
In comparison to its competitor Starbucks (NASDAQ: SBUX), Luckin was able to launch more locations in a shorter period of time in China. Starbucks opened 4,125 stores in China in nearly two decades.
Leading into Friday, shares continued to gain amid reports of optimism revolving around the U.S.-China trade wars, according to Forbes. Luckin shares rallied by as much as 22.1% on Friday.
Since launching its initial public offering earlier this year, Luckin shares have now gained almost 60%.