BEIJING – Pop Mart International Group reported a decline in third-quarter sales from a year earlier, hurt by fading Labubu momentum and a tough base of comparison following blockbuster results in 2025.
Overall revenue fell as much as 50% from a year earlier in the three months ended September, according to Pop Mart’s latest business update based on preliminary data. That compares with revenue growth of about 250% in the year-ago period.
Revenue in China declined 25% to 30%, while sales from the Americas fell 70% to 75%.
The downturn underscores the volatility that can accompany an unexpected viral hit.
Demand for Labubu – the snaggle-toothed monster plush – reached fever pitch in 2025 with everyone from K-pop idols to Hollywood celebrities and ordinary consumers seeking one.
The results also highlight mounting pressure on the company as investors grapple with softening demand in 2026 in its home market alongside persistent weakness across overseas operations.
While Pop Mart has described 2026 as “a year of adjustment”, investors are concerned that the slowdown could extend into 2027.
HSBC Holdings cut its revenue forecasts for 2027 and 2028 by 8% and 9%, respectively, in a research note released ahead of the results, citing expectations for “a longer road to stabilisation”.
The bank also lowered its 2026 sales estimate to 33.2 billion yuan (S$6.4 billion) from 34.6 billion yuan previously.
In a bid to maximise brand exposure and keep consumer buzz alive, Pop Mart continued expanding its retail footprint through flagship locations in key domestic and international markets.
The company opened a three-storey flagship store near West Lake in Hangzhou and launched its European flagship on Boulevard Haussmann in Paris in September.
It also rolled out new releases tied to popular intellectual properties, including Twinkle Twinkle and Dimoo, during the third quarter. BLOOMBERG
