RLX Technology Expands in Europe with Nicotine Pouch Focus
RLX Technology (NYSE: RLX) reported second-quarter results showing strong international growth, particularly from its new European distribution partner. International sales accounted for about 70% of revenue as the company absorbed a newly acquired distributor that connects to over 30,000 retail endpoints in Western Europe. The acquisition is part of RLX's strategy to shift toward direct-to-retail operations and reduce reliance on wholesalers. The firm also plans to expand into modern oral nicotine pouches by building manufacturing facilities in Southeast Asia. Despite these gains, domestic revenue from mainland China is expected to remain flat for the year due to tightening regulations. Gross margins improved significantly this quarter, but management warned that future performance may normalize as regulatory pressures and higher operating costs take effect.
Topics: acquisition expansion international_growth nicotine_pouches