Pop Mart Shares Drop Following Weak Overseas Sales Performance
Toy maker reports revenue growth in China but faces significant declines in Asia-Pacific and the Americas
Quick Look
- Pop Mart shares fell over 4% in Hong Kong after first-half results revealed a 9.7% sales drop in Asia-Pacific and a 16.5% decline in the Americas.
- Despite strong growth in China, Citi downgraded its outlook, citing operational challenges and competitive pressures.
AI-generated summary
Why It Matters
Pop Mart is a toy manufacturer known for its Labubu characters. The company is currently experiencing divergent growth patterns between its domestic Chinese market and international regions.
Shares of Pop Mart fell over 4% in Hong Kong on Friday after the Labubu maker reported first-half results that showed declining sales in Asia-Pacific and the Americas.
For the period ended in June 30, the toy maker reported a 23.8% year-over-year rise in first-half revenue to 17.17 billion yuan ($2.55 billion). But the growth was unequal: in Asia Pacific ex-China it fell 9.7%, and dropped 16.5% in the Americas. Revenue in China, meanwhile, jumped 47.3%.
Citi said the results came in below expectations, citing pressure in overseas markets, where sales declined 11% year over year. The company has faced challenges globally ranging from inventory management, supply chains to warehousing and logistics and store operation, according to Citi.
The bank now expects Pop Mart's group revenue to decline 8% year-over-year in 2026 and lowered its price target to HK$198. Citi said management now sees its initial 20% revenue growth target for 2026 as difficult to achieve, given more challenges than expected and competitive pressure.
The shares were recently down 3.9% to HK$147.70 ($18.84).
What to Watch
AI outlook — possibilities, not facts
Pop Mart revenue growth target for 2026 will be missed.
Likely · Within years
Open Questions
- What specific steps will Pop Mart take to address overseas logistics issues?
