A person holds a PopMart Labubu The Monsters Big into Energy Series Vinyl Plush dolls during a press preview at an AliExpress pop-up store in London, Britain, Nov. 11, 2025.
Isabel Infantes | Reuters
Shares of Pop Mart dropped more than 4% in Hong Kong on Friday after the company’s first-half results revealed weakening sales in Asia-Pacific and the Americas.
For the six months ended June 30, the toy manufacturer reported a 23.8% year-over-year increase in first-half revenue to 17.17 billion yuan ($2.55 billion). However, this growth was uneven: revenue in Asia-Pacific markets excluding China declined 9.7% year over year, while the Americas saw a 16.5% drop. Revenue in China surged 47.3% during the same period.
Citi analysts noted the results fell short of expectations, attributing the shortfall to softening demand in international markets, where sales declined 11% year over year. The company has grappled with operational challenges globally, including inventory management, supply chain disruptions, warehousing, and store operations, according to the bank.
The financial institution now projects Pop Mart’s group revenue to decrease 8% year over year in 2026 and reduced its price target to HK$198. Citi added that management now views its initial 20% revenue growth target for 2026 as increasingly difficult to achieve due to heightened competitive pressures and ongoing challenges.
The stock was last trading at HK$147.70 ($18.84), down 3.9% from the previous close.
