Key Takeaways
Pop Mart International Group (9992.HK) reported that its overall revenue for the first quarter of 2026 surged between 75% and 80% from the same period a year earlier, driven by a more than doubling of sales in mainland China.
"Pop Mart has more than just Labubu," chief executive officer Wang Ning has previously stated, addressing concerns about the company's reliance on a single intellectual property. The first-quarter results may test whether investors are convinced the art-toy maker can sustain its growth trajectory as it actively works to diversify its character portfolio and expand its global footprint.
The blockbuster revenue growth follows a period of significant volatility for the stock. Shares plunged over 22% on March 25, 2026, after annual results for 2025 showed an increasing reliance on the "Labubu" character family, which contributed 38% of total revenue. That concentration risk has been a key concern for investors, with the stock still trading about 50% below its August 2025 peak.
The latest revenue figures suggest that, for now, demand remains exceptionally strong, particularly in its home market. The result challenges the narrative that the "Labubu craze" is peaking, forcing investors to weigh stellar current performance against the potential risk of future hype fatigue for its main character. The company's ability to translate this revenue momentum into a more stable stock performance will depend on proving the success of its broader strategy.
Pop Mart's growth has been inextricably linked to the phenomenal success of Labubu, the snaggle-toothed monster doll that became a global fashion accessory. However, signs of the craze cooling have become evident. Search interest for the character peaked in August 2025 and has declined sharply since. In late 2025, the company ramped up production to combat scalpers, a move that made the toys more accessible but also caused resale prices to plunge by over 50%, ending the speculative frenzy that fueled its initial ascent.
Management is acutely aware of the risks of a single-IP model. The company is cultivating a pipeline of other characters, with sales from Skullpanda more than doubling in 2025, and strong growth from Crybaby and Dimoo. Pop Mart is also expanding into broader entertainment, confirming a partnership with Sony Pictures for a Labubu movie to deepen the character's narrative appeal.
Global expansion is another critical pillar of the strategy. After making its debut at the Macy's Thanksgiving Day Parade in 2025, the company is pushing further into the U.S. market. Reinforcing this push, mall operator Macerich confirmed in its recent earnings call that Pop Mart is a new tenant opening in the Annapolis Mall, a Class A shopping center on the U.S. East Coast, signaling a tangible step in its brick-and-mortar expansion.
This article is for informational purposes only and does not constitute investment advice.
