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Pop Mart shares
lost more than a fifth of their value on Wednesday, as concerns over the sustainability of the company’s Labubu plushies-driven growth overshadowed its blockbuster annual results.
That sharp sell-off came after the Beijing-based toy maker posted annual revenue of 37.1 billion yuan ($5.4 billion) for 2025, up 185% from a year earlier, just shy of LSEG estimates of 38 billion yuan. Net income more than quadrupled to 12.8 billion yuan, slightly above the 12.6 billion yuan forecast.
Despite resilient headline numbers, “a material slowdown in the fourth quarter [has amplified] investors’ concern on the durability of top IP’s popularity,” said Jeff Zhang, equity analyst at Morningstar, adding that a pullback in dividend payout ratio to 25% in 2025 from 35% in the prior year was also a negative factor.
