Labubu-maker Pop Mart's shares extend declines as third-quarter sales plunge

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The LABUBU exhibition, Monsters by Monsters: Now and Then, opens at the Hotel du Grand Veneur in Paris, France, on March 7, 2026. After touring Shanghai, Taipei, and Hong Kong, the world tour celebrating the first decade of The Monsters 10th Anniversary, from which Labubu originates, arrives in Paris. The story of Labubu, the plush toy that became a pop culture icon and fashion accessory. (Photo by Riccardo Milani / Hans Lucas / AFP via Getty Images)

Riccardo Milani | Afp | Getty Images

Shares of Chinese toymaker Pop Mart, known for its popular Labubu dolls, added to their more than 30% decline so far this year, following a sharp decline in third-quarter revenue.

Shares were last down under 2%, paring losses after declining more than 6% in early trading Wednesday. They have ended in the red in nine of the past 12 sessions.

The company reported a 45% to 50% year-on-year drop in third-quarter revenue on Tuesday, according to a filing.

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Shares of Pop Mart on 28 Oct.

The steep sales decline raises questions about whether the frenzy surrounding Labubu and other collectible toys can sustain the company's rapid growth, particularly in overseas markets.

The decline was particularly steep overseas, with revenue in the Americas plunging 70% to 75%, while Asia-Pacific sales dropped 65% to 70%. Revenue in mainland China fell 25% to 30%, while Europe and other regions recorded a 50% to 55% decline.

The results were weaker than estimates of a 30% revenue decline, although broadly in line with buy-side expectations, according to Jefferies. The brokerage cut Pop Mart's earnings estimates for 2027 and 2028 by 9% to 12%, citing pressure on profitability from weaker overseas sales.

Fourth-quarter revenue is expected to rise 3% from the previous quarter but remain 34% below year-earlier levels, according to Jefferies.

Pop Mart is continuing its global store expansion, with a greater focus on flagship locations in cities including New York, Milan and Paris, while diversifying its portfolio of intellectual properties beyond Labubu, with SKULLPANDA, Hirono and Twinkle Twinkle gaining traction in overseas markets, according to Jefferies.