BEIJING, March 25 (Reuters) – Shares of Pop Mart International Group, the Hong Kong-listed maker of collectible “blind box” toys – including the viral, toothy-grinned Labubu – experienced their biggest drop in nearly a year on Wednesday after the company reported 2025 earnings.
Pop Mart shares were down more than 20% after the midday break.
The Beijing-based company said its 2025 revenue rose 185% from a year earlier, reaching 37.12 billion yuan ($5.38 billion).
Morningstar analyst Jeff Zhang said the annual revenue and earnings growth missed the consensus estimate from analysts, with a material slowdown in the fourth quarter, amplifying investor concerns about the durability of top intellectual properties.
“A pullback in dividend payout ratio to 25% in 2025 from 35% in 2024 is another negative to us,” Zhang said. “Pop Mart has also doubled down on the licensing business and theme park operations, but we think execution risks remain high.”
Wang Ning, Pop Mart’s chairman and chief executive, said the company expects to deliver revenue growth of no less than 20% from a year earlier in 2026.
“We won’t pursue overly aggressive growth that boosts revenue at the expense of profitability,” Wang said on a post-earnings call with analysts and investors.
The company said it would continue to expand its product offerings, including home appliances, which are expected to debut next month. An expansion of its Beijing theme park is on track to open during the summer, executives said.
Riding a global wave of demand for its plush toys, bag charms and collectibles from hit intellectual properties like The Monsters – including Labubu – Molly and Crybaby, Pop Mart has grown from a domestic blind-box retailer into one of the country’s most closely watched consumer brands, as it continues to ride a wave of popularity to further overseas expansion.
The company’s 2025 revenue nearly tripled from a year earlier to 37.12 billion yuan from 13.04 billion yuan. It reported profit attributable to owners of 12.78 billion yuan, up 308% from 3.13 billion yuan a year earlier.
In January, the company said it had added manufacturing capacity in Mexico, Cambodia and Indonesia to support demand and strengthen supply-chain resilience.
The company also said it plans to make London its European headquarters and has teamed up with Sony Pictures to develop a film about Labubu, underscoring its push to expand further in overseas markets.
(Reporting by Casey Hall in Shanghai, Sophie Yu in Beijing; Editing by Thomas Derpinghaus)
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