Pop Mart sales growth decelerates amid sharp overseas slowdown

POP Mart International Group reported slower sales growth for the first quarter, marking a deceleration from its rapid expansion last year amid waning momentum for its blockbuster Labubu toys.

Overall revenue grew as much as 80 per cent on-year in the period ended March, with China sales increasing as high as 105 per cent, Pop Mart said on Tuesday in an exchange filing.

The company recorded an overall revenue growth of 185 per cent and overseas sales growth of almost 300 per cent in 2025, driven largely by the Labubu frenzy that turned the snaggle-toothed monster plush into a global collectible phenomenon.

But the slowdown underscores mounting pressure on Pop Mart to reignite momentum, especially in markets including the US, as the Labubu craze cools and the company struggles to replicate that level of cultural breakout with a new product.

The company is already working with Sony Pictures Entertainment on a Labubu film to take the character beyond merchandise. The movie could feed into theme parks, products and other experiences, Pop Mart chief executive officer Wang Ning had said in an earlier interview.

For now, year-on-year growth is expected to weaken further in the next few quarters, with full-year revenue growth seen at 13 per cent, Morgan Stanley said on Monday, ahead of Pop Mart’s latest update. Deutsche Bank AG consumer analyst Sammi Xu expects 2026 revenue to decline 2 per cent.

Widening disconnect

Both estimates came in lower than the “at least 20 per cent growth” Wang guided at the company’s earnings briefing in March, highlighting a widening disconnect between management’s tone and analysts’ expectations.

Revenue in America and Asia Pacific increased as much as 60 per cent and 30 per cent, respectively, in the first quarter, while that of Europe and other regions rose up to 65 per cent, the Beijing-based designer toymaker said.

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Pop Mart’s sales in the US, a key growth engine, dropped 42 per cent year on year in April after a 45 per cent decline in March, according to Bloomberg Second Measure data, which tracks credit and debit card transactions.

Card-spending data captures only a slice of total sales and can swing based on promotional campaigns rather than underlying demand. 

Deutsche Bank has cut its price target for Pop Mart shares to HK$140 from HK$157. Morgan Stanley reduced its target to HK$247 from HK$278 but said Pop Mart’s overseas thesis is not broken, arguing that continued offline expansion could help convert casual shoppers into long-term fans.

Pop Mart’s shares listed in Hong Kong have tumbled 25 per cent since the company reported full-year earnings in late March. BLOOMBERG