Pop Mart shares fall 6% as cooling Labubu craze spurs sharp drop in Q3 sales

Shares of Pop Mart International Group Ltd (HK:9992) plummeted by up to 6% to HK$123.8 on Wednesday, hitting an 18-month low after the company disclosed a sharp decline in Q3 2026 sales due to waning demand for its signature Labubu figurines. On Tuesday evening, Pop Mart revealed that unaudited third-quarter revenue dropped by 45% to 50% year-over-year.

The decline was felt across all regions, with the Americas experiencing the most significant drop, with sales falling 70% to 75% compared to the same period in 2025. Asia-Pacific, excluding China, saw a 65% to 70% revenue decrease, while Europe and other regions experienced a 50% to 55% decline. China, the company's domestic market, reported a comparatively smaller 25% to 30% drop.

Within China, the online sales channel saw a more severe decline of 45% to 50%. The revenue decline was primarily attributed to weakening demand for Pop Mart's Labubu figurines, a product line that had fueled sales growth during a viral trend that has since waned. Pop Mart has not yet unveiled a successful follow-up product to replace the underperforming Labubu line.