Pop Mart shares sink despite revenue surge, as analysts say Labubu reliance worries investors

HONG KONG (AP) — Labubu doll shaper Pop Mart’s shares sank astir 23% connected Wednesday contempt robust revenue, with analysts pointing to capitalist concerns implicit the Chinese artifact company’s quality to turn beyond its dense reliance connected Labubu-related income.

The plunge successful Pop Mart’s Hong Kong-listed shares came aft the institution reported 37.1 cardinal yuan ($5.4 billion) successful yearly gross for 2025, up 185% from the twelvemonth earlier but somewhat missing analysts’ estimates.

Profit for the full of past twelvemonth was 12.8 cardinal yuan ($1.9 billion), up much than 300% from the 3.1 cardinal yuan successful 2024, the institution said.

Labubu, the toothy monster dolls with pointed ears, gained immense popularity crossed the satellite since 2024 arsenic it was trending connected societal media and seen connected handbags of celebrities. Long queues were formed astatine Pop Mart stores successful galore cities and fans were determined to drawback up their latest editions.

Pop Mart’s reliance connected Labubu, said Jeff Zhang, an equity expert astatine Morningstar, is apt portion of the crushed for Wednesday’s stock terms fall. Pop Mart’s shares are inactive up 33% implicit the past twelvemonth contempt the capitalist sell-off.

“We deliberation the market’s biggest interest inactive lies successful the net maturation prospect,” Zhang said, though helium added that the Labubu frenzy is apt “yet to cease.” Roughly 38% of Pop Mart’s gross came from its “The Monsters” proprietary intelligence spot characters, which includes Labubu.

“Labubu’s popularity has been a immense success,” said Gary Ng, a elder economist astatine French slope Natixis. “However, determination is an emerging interest that determination is nary 2nd maturation driver.”

If maturation momentum of Labubu and its applicable products stall, it could go a “concentration risk” that would resistance connected sentiment, Ng said. Pop Mart's different characters see Molly and Skullpanda.

Wang Ning, CEO of Pop Mart, sought to easiness capitalist worries connected maturation prospects during an net league connected Wednesday.

“People person expressed worries erstwhile talking astir Labubu,” Wang said, “(About) whether it mightiness conscionable beryllium a craze, and if it would beryllium experiencing immense fluctuations.”

“However, based connected our observations, we are pleased to spot that it is becoming a manner for much and much people,” helium said. “We person beardown expectations and assurance for (its) future.”

Pop Mart besides has a taxable parkland successful Beijing, and conscionable past week, the institution confirmed it is partnering with Sony Pictures Entertainment connected a caller movie featuring Labubu.

It has besides been expanding its planetary scope and accumulation capabilities, and has manufacturing partners successful countries specified arsenic Cambodia, Indonesia and Mexico, connected apical of China, the institution said earlier.