Pop Mart shares sink despite revenue surge, as analysts say Labubu reliance worries investors

HONG KONG — Labubu doll maker Pop Mart’s shares sank nearly 23% on Wednesday despite robust revenue, with analysts pointing to investor concerns over the Chinese toy company’s ability to grow beyond its heavy reliance on Labubu-related income.

The plunge in Pop Mart’s Hong Kong-listed shares came after the company reported 37.1 billion yuan ($5.4 billion) in annual revenue for 2025, up 185% from the year before but slightly missing analysts’ estimates.

Profit for the whole of last year was 12.8 billion yuan ($1.9 billion), up more than 300% from the 3.1 billion yuan in 2024, the company said.

Labubu, the toothy monster dolls with pointed ears, gained huge popularity across the world since 2024 as it was trending on social media and seen on handbags of celebrities. Long queues were formed at Pop Mart stores in many cities and fans were determined to snap up their latest editions.

Pop Mart’s reliance on Labubu, said Jeff Zhang, an equity analyst at Morningstar, is likely part of the reason for Wednesday’s share price fall. Pop Mart’s shares are still up 33% over the past year despite the investor sell-off.

“We think the market’s biggest concern still lies in the earnings growth prospect,” Zhang said, although he added that the Labubu frenzy is likely “yet to cease.” Roughly 38% of Pop Mart’s revenue came from its “The Monsters” proprietary intellectual property characters, which includes Labubu.

“Labubu’s popularity has been a huge success,” said Gary Ng, a senior economist at French bank Natixis. “However, there is an emerging concern that there is no second growth driver.”

If growth momentum of Labubu and its relevant products stall, it could become a “concentration risk” that would drag on sentiment, Ng said. Pop Mart's other characters include Molly and Skullpanda.

Wang Ning, CEO of Pop Mart, sought to ease investor worries on growth prospects during an earnings conference on Wednesday.

“People have expressed worries when talking about Labubu,” Wang said, “(About) whether it might just be a craze, and if it would be experiencing huge fluctuations.”

“However, based on our observations, we are pleased to see that it is becoming a lifestyle for more and more people,” he said. “We have strong expectations and confidence for (its) future.”

Pop Mart also has a theme park in Beijing, and just last week, the company confirmed it is partnering with Sony Pictures Entertainment on a new movie featuring Labubu.

It has also been expanding its global reach and production capabilities, and has manufacturing partners in countries such as Cambodia, Indonesia and Mexico, on top of China, the company said earlier.