Pop Mart's third quarter sales fell by up to 50 percent as demand for the Labubu doll wanes, according to a filing with the Hong Kong Stock Exchange. The Beijing-based toy company, which soared to global stardom on the back of Labubu's viral frenzy, reported declines of 45 to 50 percent year-on-year. The downturn was particularly sharp in Western markets, where Americas sales dropped between 70 and 75 percent, and Europe declined by up to 55 percent.
Mainland China saw a more moderate decline of 25 to 30 percent. At its peak, Pop Mart's market capitalization was more than double that of Hasbro and Mattel combined. The company, known for its blind box products retailing around $10, has struggled to convince investors it can sustain growth with alternative toys as the Labubu craze falters.
Shares have tumbled more than half since their peak in August 2025, valuing the company at about $22 billion. The update comes amid weak consumer sentiment in China, which represented over half of Pop Mart's 2025 revenue, and affordability concerns in the US market where the company seeks new growth. Revenue was further impacted by falling secondary market prices for Labubu collectibles, signaling sinking demand.
Source: Financial Times Companies · Summarized by HeadlinesBriefing