RLX Technology Clocks 12% Revenue Decline In Q2

RLX Technology Inc RLX reported a second-quarter FY22 sales decline of 12% year-on-year to $333.50 million.
The company attributed the revenue decrease to suspending store expansions and new product launches during the transition period to comply with regulatory requirements.
The gross margin for the quarter contracted 130 basis points to 43.8%, and the gross profit decreased 14.7% to $146 million.
The operating expenses for the quarter jumped 217.6% to $79.3 million. The operating margin was 20%, and the operating income for the quarter was $66.7 million.
The company held $2.5 billion in cash and equivalents as of June 30, 2022.
Non-GAAP EPS for the quarter was RMB 0.492 ($0.07) versus RMB 0.467 last year.
Price Action: RLX shares are trading higher by 0.81% at $1.24 in premarket on the last check Wednesday.

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