Labubu Maker's Revenue Momentum Slows After Explosive Growth

By Sherry Qin and Megan Cheah

Pop Mart's business growth decelerated sharply in the first half of 2026 as the Chinese toy maker worked to find its next blockbuster character and turn the Labubu dolls' novelty appeal into an enduring franchise.

For two years, the Beijing-based company was on a roll, earning the hearts--and wallets--of global consumers with its ugly-cute Labubu dolls. But as the hype waned and a Labubu fatigue set in, so too has the stock rally that catapulted Pop Mart's market capitalization past $56 billion at the peak.

The company's revenue climbed 24% in the first six months of the year to 17.17 billion yuan, equivalent to $2.55 billion, slowing significantly from the threefold increase recorded in the year-ago period. That missed analysts' expectations of a 37% rise, according to a Visible Alpha poll, though it kept the company in good stead to reach management's goal of at least 20% growth this year.

Its net profit rose 10% to 5.04 billion yuan, also below market consensus of 5.785 billion yuan.

Labubus remained central to Pop Mart's business. The Monsters collection, which includes the jagged-tooth, gremlin-looking plush toys, were still the biggest revenue contributor, accounting for about a quarter of overall sales in the first half, down from roughly one-third a year earlier.

In a reflection of fading consumer enthusiasm, Deutsche Bank's Sammi Xu noted that the latest generation of Labubus sporting long, styleable hair have seen tamer demand, while discussions on social media have dwindled recently.

If this momentum continues, Pop Mart might need a new product format or another celebrity-endorsed character that can reignite conversation and the scarcity mindset that drove demand, the analyst said.

For now, characters such as Skullpanda and Twinkle Twinkle have attracted fans of their own, though nothing on the scale of the fervor the Labubu dolls sparked.

The company's share performance has mirrored the cooling Labubu craze. Its Hong Kong-listed stock has declined nearly 20% so far this year--a reversal of fortune from the past two years, when it doubled and more than quadrupled, respectively.

Write to Sherry Qin at sherry.qin@wsj.com and Megan Cheah at megan.cheah@wsj.com

(END) Dow Jones Newswires

August 20, 2026 05:19 ET (09:19 GMT)