Pop Mart reports 45 to 50% revenue decline as Labubu sales weaken across major markets
Pop Mart, the Chinese toymaker famous for Labubu collectible dolls, reported a 45 to 50 per cent year-on-year decline in third-quarter revenue, as sales weakened across its major markets, with overseas operations and online channels bearing the brunt of the slowdown. Revenue in mainland China fell 25 to 30 per cent in the third quarter from a year earlier, while revenue in Asia-Pacific markets…
Pop Mart, the renowned Chinese toy manufacturer known for its Labubu collectible dolls, has announced a substantial 45 to 50 percent year-on-year decline in revenue for the third quarter, as sales falter across its key markets. Overseas and online channels have been particularly hard hit by the slowdown. Mainland China experienced a 25 to 30 percent drop in revenue, while Asia-Pacific markets outside China and Oceania saw a 65 to 70 percent decline.
The Americas witnessed a 70 to 75 percent decrease, and Europe and other regions reported a fall of 50 to 55 percent during the same period, according to a filing to the Hong Kong stock exchange.
The company's financial report revealed that mainland China's revenue from offline channels dropped by 5 to 10 percent year-over-year, while online revenue declined by 45 to 50 percent. This suggests a more pronounced weakness in digital sales. The disappointing results have prompted investors to reevaluate Pop Mart's growth prospects, following the global buzz that surrounded its Labubu line last year.
Concerns have also been raised about the sustainability of demand for its collectible toys and the company's capacity to create new, popular characters.
Founder and CEO Wang Ning admitted at an interim-results earnings call in August that the company may not achieve its 20 percent full-year sales growth target. Since the release of the business update, Pop Mart's shares have plummeted, losing over 13 percent in six consecutive trading sessions and falling more than 60 percent from their August 2025 peak of HK$337.10.
The stock is currently trading at HK$132 as of Tuesday, just ahead of the release of the financial update. Swiss bank UBS recently lowered its target price for the toymaker to HK$181.30 from HK$203.10, maintaining a "buy" rating. Despite the sell-off, prominent investors remain bullish on the company. Duan Yongping, often referred to as "China's Warren Buffett," has stated his intention to purchase additional shares, but he has set a limit of 10 percent to avoid any potential issues with the company.
Written by urgent.news from SCMP Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.