Pop Mart profit jumps, but Labubu growth fears hit shares

Chinese toymaker Pop Mart said 2025 revenue rose 184.7% year on year to 37.1 billion yuan (US$5.4 billion), while net profit nearly quadrupled to US$1.9 billion.

Its shares fell about 30% after the results, as investors questioned whether growth tied heavily to the Labubu franchise can last.

Overseas revenue rose 291.9% to US$2.3 billion, led by a sharp rise in the Americas.

Labubu generated 14.2 billion yuan (US$2.07 billion), or about 38% of total sales, and Pop Mart said it plans to expand its US store count from 72 to more than 100 in 2026.

🔗 Source: China Daily

🧠 Food for thought

Implications, context, and why it matters.

The market sell-off followed warning signs about future growth

Traders focused on what comes next after Pop Mart gave conservative growth guidance for 2026 and logged a sharp slowdown in the fourth quarter 1.
Interest in Labubu already looks softer, with Google searches for “Labubu figurine” sliding from an index peak of 66 in August 2025 to 6 by March 2026 2.
Management raised Labubu output to cut scalping, which also reduced the scarcity that powered the early rush. The company also lowered its dividend payout ratio to 25% in 2025 from 35% in 2024, which read as a more guarded stance 1.

Pop Mart is stretching Labubu beyond toys into entertainment

The group is shifting from selling products to building an intellectual property (IP) ecosystem, with continuous investment aimed at keeping characters relevant over time 3.
Plans include “worlds” built through a Labubu feature film project with Sony Pictures, the Hollywood film studio, plus filmmaker Paul King, the director of the Paddington films. The slate also includes Pop Land in Beijing and fashion tie-ins with Uniqlo plus Moynat, a French luxury leather goods brand 3.
A wider mix of bets can cushion the swings of collectible hype, which often fades once scarcity disappears 2.
It also reduces exposure to rule changes around blind-box sales, since regulators in China and Singapore have introduced or planned tighter rules tied to addictive and gambling-adjacent behavior 3.