Pop Mart revenue fell 45–50% in the third quarter — CNBC

In Hong Kong, China, shares of Chinese collectible toy maker Pop Mart, known for its Labubu dolls, continued to decline after it reported a 45–50% year-on-year drop in third-quarter revenue. According to CNBC, the shares were down more than 6% at the start of trading on Wednesday, before narrowing their losses to less than 2%.

The company reported the decline in quarterly revenue in its earnings report. Since the beginning of the year, Pop Mart shares have lost more than 30%, and nine of the past 12 trading sessions ended lower.

The biggest decline abroad

Sales fell most sharply in overseas markets. Revenue in the Americas dropped by 70–75%, while in Asia-Pacific countries it declined by 65–70%. In Europe and other regions, the decrease was 50–55%.

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In mainland China, Pop Mart's revenue fell by 25–30%. Overall, the company's results were weaker than Jefferies' estimate, which had projected a revenue decline of around 30%.

Analysts' estimates

Jefferies analysts lowered their earnings estimates for Pop Mart for 2027 and 2028 by 9–12%. They cited weaker overseas sales and pressure on profitability as the reasons.

Jefferies expects the company's revenue to rise by 3% in the fourth quarter compared with the previous quarter, but to remain 34% below the same period of the previous year. At the same time, Pop Mart continues to expand its store network worldwide, focusing more on flagship locations in New York, Milan and Paris, and is also developing other brands, including SKULLPANDA, Hirono and Twinkle Twinkle.