Chinese toy maker Pop Mart International Group Ltd. reported strong revenue growth in both mainland China and international markets in the latest quarter, helped by a new series of its wildly popular Labubu toys, Bloomberg reported.
Pop Mart’s total revenue for the three months ended September jumped 250% from a year earlier, according to an updated business report to the Hong Kong Stock Exchange.
The company’s sales have been soaring since the second half of 2024, when the Labubu soft toy became a global hit, beloved by celebrities and consumers alike. The launch of the new mini Labubu in late August sparked another wave of hype.
Overseas sales growth is significantly outpacing domestic growth:
- International: Revenue up 370%.
- Mainland China: Growth of around 190%.
The most impressive results came from Western markets, where Labubu has become a cult collectible:
- Americas: Revenue up 1,270% in the third quarter.
- Europe: Sales up 740%.
- Asia-Pacific: Growth of 170%-175%.
Despite the upbeat news, Pop Mart shares fell 8.1% ahead of the report, their most significant one-day drop since April. Analysts speculated that investors may have been concerned that growth might slow from last year’s high base, or that the hype surrounding Labubu toys might be waning.