Labubu Maker's Earnings Show It's Not Toying Around

By Sherry Qin

The Labubu doll craze put Chinese toy maker Pop Mart in the spotlight. Blockbuster profit and revenue growth suggest it has earned its place there.

The Beijing-based company captured the hearts--and wallets--of global consumers with its ugly-cute Labubu dolls, part of a range of collectibles sold in so-called blind boxes that conceal the contents from buyers, making each purchase a surprise.

Many had said the fad would soon fade, casting doubt on the logic of Pop Mart's share price catapulting above that of heavyweights like Alibaba. But the company has managed to defy the doubters, with profit quadrupling and revenue nearly tripling last year.

In a year marked by weak consumption in Pop Mart's home market of China and tariff turmoil across the world, the toy company managed to bag net profit of 12.78 billion yuan, equivalent to $1.85 million. Its 2025 revenue was 37.12 billion yuan.

Revenue from overseas operations increased almost fourfold to 16.27 billion yuan, accounting for 44% of total revenue.

The question on investors' minds now is if Pop Mart can keep churning out hits.

So far, it has managed to keep its fans captivated with new rollouts like Mini Labubus and new characters like Skullpanda and Twinkle Twinkle.

Still, Pop Mart isn't immune to the current market turmoil, and some wonder if it has peaked. After surging about 350% in the past two years, Pop Mart's shares have lost some momentum in recent months. They have risen 16% this year through Tuesday, though that has occurred amid geopolitical conflicts that have depressed risk-taking across asset classes worldwide.

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

(END) Dow Jones Newswires

March 25, 2026 01:12 ET (05:12 GMT)