Pop Mart Sales Top Market Expectation, Signals Sustained Momentum

By Sherry Qin

Pop Mart reported stronger-than-expected third-quarter results, signaling sustained sales momentum which belied its shares' recent weakness.

Pop Mart said late Tuesday that its third-quarter revenue more than tripled compared with the same period a year earlier, AS sales from the Americas rocketed 1,265%-1,270%. The surge in revenue was a further acceleration from the first-half of the year and topped market expectations.

Shares of the Labubu maker rose 3.9% on early Wednesday after ending 8.1% lower ahead of the results.

Nomura analysts think that Pop Mart's robust intellectual property development and operation capabilities have sustained its sales momentum. In addition to its Monsters collection, which includes the red-hot Labubu doll, other IPs, such as Twinkle Twinkle, have also developed their own unique selling points and target consumers, they note.

Investors have grown more cautious about the company and its long-term outlook in recent months, pressing the company's shares 28% from its peak in August.

The recent share correction was mainly due to a decline in the second-hand prices of Labubu toys, which was mostly a result of the company's proactive capacity expansion, CGS International analysts said in a note. Demand for Labubu remains strong with the toys still sold out in all channels, they added.

Citi thinks the decent sales trend could continue during the upcoming festive season, although its momentum may decelerate because of the higher base of comparison.

Write to Sherry Qin at sherry.qin@wsj.com

(END) Dow Jones Newswires

October 22, 2025 00:02 ET (04:02 GMT)