Visitors visit the “the monsters Convenience Store” themed exhibition created by POP MART with IP LABUBU as the selling point, Shanghai, China, July 23, 2025.
Cfoto | Future Publishing | Getty Images
Shares in Chinese toymaker Pop Mart fell Wednesday, a day after the company posted a near-400% surge in net profit, driven by booming global demand for its Labubu dolls.
Pop Mart’s revenue jumped 204.4% year on year to 13.88 billion yuan ($1.93 billion), and its net profit attributable to shareholders soared 396.5% to 4.57 billion yuan for the first six months of 2025, compared with last month’s forecast of at least 200% revenue growth and 350% rise in profit.
Pop Mart dropped as much as 4.7% before paring losses to 0.85% as of 10.15 a.m. local time (10:15 p.m. ET Tuesday)
The Beijing-headquartered company’s Labubu plushies — sharp-toothed, big-eared ugly-cute dolls have taken the world by a storm, with its $30 keychains spotted on the bags of Rihanna and K-pop band Blackpink’s Lisa.
The company markets its toys in “blind boxes,” where buyers discover the character only after opening the mystery box.
In June, Chinese state media urged stricter oversight of blind-box toys and trading cards sold to children under the age of eight, suggesting measures such as age verification at checkout and parental consent for online purchases.
While not directly naming Pop Mart, state media criticized businesses for encouraging kids to spend excessively on “mystery boxes” and “blind cards.”
“We think the longevity of popularity for Pop Mart’s key IPs remain uncertain. While sales growth of Labubu and other IPs remain robust, there is no guarantee that consumers will continue to favor them in the next 5-10 years, as their preferences may change very fast,” said Jeff Zhang, equity analyst at Morningstar.
Pop Mart’s stock has rallied more than 200% since the start of the year, data from LSEG showed.
“Shares likely remain overpriced as investors are overlooking the high business risk in the long run, in our view,” Zhang added.
Asia-Pacific, excluding China, was the company’s largest overseas market, with revenue soaring 257.8% to 2.85 billion yuan compared to the same period a year ago. The Americas made up its second-largest overseas market, with revenue jumping over 1,000% to 2.26 billion yuan.
Intellectual Property is at the “core” of Pop Mart’s business, the toymaker said in its earnings statement, adding that it will seek to continue expanding its global business footprint.