Labubu-maker Pop Mart’s shares fall after it posts 400% profit surge

Shares of Chinese toy company Pop Mart experienced a decline on Wednesday, following a remarkable 400% increase in net profit, attributed to the strong global demand for its Labubu dolls.

Pop Mart’s revenue surged by 204.4% to 13.88 billion yuan ($1.93 billion) year on year, with net profit attributable to shareholders skyrocketing by 396.5% to 4.57 billion yuan for the first half of 2025, surpassing previous forecasts.

The company’s stock initially dropped by 4.7% but later recovered to a 0.85% decline by 10:15 a.m. local time.

Pop Mart’s Labubu plushies, known for their unique design and popularity, have gained significant traction globally, with celebrities like Rihanna and Blackpink’s Lisa showcasing their $30 keychains.

The company’s strategy of selling toys in “blind boxes,” where the character is revealed upon opening, has been a hit among consumers.

In response to concerns raised by Chinese state media regarding blind-box toys, Pop Mart and similar businesses may face increased scrutiny and regulation to protect young consumers.

Despite its current success, analysts caution that Pop Mart’s long-term sustainability is uncertain due to rapidly changing consumer preferences.

Pop Mart’s stock has surged over 200% since the beginning of the year, reflecting investor optimism but also raising concerns about the company’s future risks.

The company’s strong performance in the Asia-Pacific and Americas markets underscores its global appeal and commitment to expanding its IP-based offerings.

Emphasizing the importance of Intellectual Property, Pop Mart aims to capitalize on its unique assets and continue its international growth trajectory.