Pop Mart Reports 45-50% Third-Quarter Revenue Drop as Labubu Sales Weaken

A business update filed to the Hong Kong stock exchange late Tuesday showed a broad decline in Pop Mart’s third-quarter revenue across its key markets.

Pop Mart, the Chinese toymaker famous for its Labubu collectible dolls, reported a 45 to 50 per cent year-on-year decline in third-quarter revenue.

The decline came as sales weakened across major markets, with the company’s overseas operations and online channels bearing the brunt of the slowdown.

The update also provides a regional breakdown of the contraction, showing that markets outside mainland China recorded steeper declines than the company’s domestic business.

Overseas markets see sharpest falls

Revenue in mainland China fell 25 to 30 per cent in the third quarter from a year earlier, according to the filing.

Revenue in Asia-Pacific markets outside mainland China and Oceania dropped 65 to 70 per cent during the same period.

The Americas recorded a decline of 70 to 75 per cent, making it the weakest-performing region listed in the update.

Europe and other regions reported a fall of 50 to 55 per cent, the filing showed.

The figures indicate that the slowdown extended across both regional markets and sales channels, rather than being limited to one location.

The steep fall in overseas and online operations comes as investors question the long-term demand for Pop Mart’s collectible dolls, including Labubu.

The company’s update therefore places the focus on whether weaker sales across major markets will persist as the business assesses demand for its products.

Source: South China Morning Post