Atour Lifestyle Holdings announces strong growth in Q1 2024, according to Investing.com

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Atour Lifestyle Holdings (NASDAQ: ATOL) has reported impressive growth in its first quarter 2024 earnings, with net revenues surging by 89.7% year-over-year to reach RMB1,468 million. This growth was primarily driven by the expansion of its hotel network and a significant increase in its retail business. The company saw a robust increase in its membership base, surpassing 71 million registered members, and successfully introduced new products like the Deep Sleep Lightweight Comforter.

Key Takeaways from Atour’s Q1 2024 Earnings:
– Net revenues soared by 89.7% year-over-year to RMB1,468 million.
– The hotel network expanded with 97 new openings, totaling 1,302 hotels.
– Retail business GMV increased by 277%, with online sales contributing over 90% of the total.
– Membership base grew by 86%, surpassing 71 million registered members.
– The company published its inaugural ESG report, emphasizing sustainability efforts.
– Atour plans to raise its full-year revenue guidance to a 40% year-over-year increase.

Company Outlook:
– Atour aims for a 40% year-over-year revenue growth for the full year.
– The company is focused on optimizing cost structures and improving operational efficiency.
– New product launches in the sleep category are expected to drive revenue growth.
– Atour is preparing to open the first Atour 4.0 hotel.

Bearish Highlights:
– Anticipated pressure on profit margins due to RevPAR fluctuations and revenue structure changes.
– Expectation of bigger pressure on RevPAR in the second quarter.

Bullish Highlights:
– Continued growth in leisure tourism and sustainable hotel occupancy rates.
– Retail business experienced high double-digit revenue growth projections for the full year.

Misses:
– Decrease in average daily rate (ADR) due to a high comparison base.

Q&A Highlights:
– Atour Light 3.0 hotels exceeded RMB290 in RevPAR in Q1 and rose above RMB300 in April.
– The company is refining the Atour Light 3.0 model based on user feedback.
– Over 30 benchmark projects secured for Atour 4.0, with the opening of the first hotel imminent.
– Consideration of increasing shareholder returns, including dividends, based on performance.

InvestingPro Insights:
Atour Lifestyle Holdings has shown significant financial performance, with a strong revenue growth trajectory. The company’s Gross Profit Margin stands at a healthy 40.97%, indicating profitability amid expansion. Investors should note the high Price/Book multiple of 8.45, reflecting market expectations for future growth. The company is valued fairly for its earnings performance based on the P/E Ratio (Adjusted) of 24.41. Atour holds more cash than debt, indicating financial stability and flexibility.

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Overall, Atour Lifestyle Holdings’ strong start in 2024, coupled with its growth plans and financial performance, presents a positive outlook for the remainder of the year. Shareholders can anticipate potential increases in returns aligned with the company’s performance and future strategies.