Pop Mart International Group Ltd. reported a decline in third-quarter sales from a year earlier, hurt by fading Labubu momentum and a tough base of comparison following last year's blockbuster results. Overall revenue fell as much as 50% from a year ago 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 this year 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 Plc 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 stabilization." The bank also lowered its 2026 sales estimate to 33.2 billion yuan from 34.6 billion yuan previously.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing