Pop Mart shares rise 8% in volatile trading after Labubu-maker posts near-400% profit surge
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Pop Mart shares rise 8% in volatile trading after Labubu-maker posts near-400% profit surge

August 20, 2025
03:49 AM
3 min read
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Pop Mart has seen booming global demand for its Labubu plushies that have become a worldwide sensation.

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3 min read

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investment

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Published

August 20, 2025

03:49 AM

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CNBC

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tradingconsumer discretionaryretailmarket cyclesseasonal analysispolicy

Visitors visit the "the monsters Convenience Store" themed exhibition created by POP MART with IP LABUBU as the selling point, Shanghai, China, July 23, 2025

Cfoto | Future Publishing | Getty Imagess in Chinese toymaker Pop Mart rose Wednesday in volatile trading, a day after the company posted a near-400% surge in net fit, driven by booming global demand for its Labubu dolls.Pop Mart was trading above 8% as of 11.47 a.m. local time.(11:47 p.m

ET Tuesday), after dropping as much as 4.7% at the start of the session.Pop Mart's revenue jumped 204.4% year on year to 13.88 billion yuan ($1.93 billion), and its net fit attributable to holders soared 396.5% to 4.57 billion yuan for the first six months of 2025, compared with last month's forecast of at least 200% revenue growth and 350% rise in fit.The Beijing-headquartered company's Labubu plushies — sharp-toothed, big-eared ugly-cute dolls have taken the world by storm, with its $30 keychains spotted on the bags of Rihanna and K-pop band Blackpink's Lisa

The company its toys in "blind boxes," where buyers discover the character only after opening the mystery box.Stock Chart IconStock chart icons of Pop Mart in the past one yearIn June, Chinese state media urged stricter oversight of blind-box toys and trading cards sold to children under the age of eight, suggesting measures such as age verification at checkout and parental consent for online purchases.While not directly naming Pop Mart, state media criticized es for encouraging kids to spend excessively on "mystery boxes" and "blind cards.""We think the longevity of ity for Pop Mart's key IPs remain uncertain

While sales growth of Labubu and other IPs remain robust, there is no guarantee that consumers will continue to favor them in the next 5-10 years, as their preferences may change very fast," said Jeff Zhang, equity analyst at Morningstar.Pop Mart's stock has rallied more than 200% since the start of the year, data from LSEG showed."s ly remain overpriced as investors are overlooking the high risk in the long run, in our view," Zhang added.Asia-Pacific, excluding China, was the company's largest overseas market, with revenue soaring 257.8% to 2.85 billion yuan compared to the same period a year ago

The Americas made up its second-largest overseas market, with revenue jumping over 1,000% to 2.26 billion yuan.Intellectual perty is at the "core" of Pop Mart's , the toymaker said in its earnings statement, adding that it will seek to continue expanding its global foot.