Labubu dolls fuel explosive global sales
Shares of Chinese toymaker Pop Mart soared 12.5% on Wednesday following the company’s announcement of a 396.5% surge in net profit for the first half of 2025. The Hong Kong-listed company saw its revenue climb 204.4% year-over-year to 13.88 billion yuan ($1.93 billion), far exceeding prior projections.
At the heart of this growth is the immense global demand for its Labubu dolls — quirky, plush figures that have gained cult status, with celebrities like Rihanna and Lisa from K-pop group Blackpink spotted carrying the $30 keychains.
CEO aims for 30B yuan in 2025 revenue
Pop Mart CEO Wang Ning said the company is confident in hitting its 2025 revenue goal of 20 billion yuan and added that 30 billion yuan “should also be quite easy.” The company plans to launch a new miniature Labubu that clips onto smartphones later this week.
Investor enthusiasm was also driven by Wang’s bullish remarks, with Hao Hong of Lotus Asset Management predicting that the stock could hit new highs soon. Analysts noted that the sharp spike may partly be due to short sellers covering their positions and long-term global investors entering the market.
Risks remain despite rapid growth
Despite the strong earnings, not all analysts are convinced of Pop Mart’s long-term outlook. Jeff Zhang of Morningstar raised concerns over the longevity of the company’s intellectual property (IP), warning that consumer preferences may shift over the next 5–10 years. He also called the current stock price potentially “overpriced” given the business risks.
In June, Chinese state media called for more regulation of blind-box toys — a category Pop Mart pioneered — especially for children under eight. While not naming the company, authorities criticized the encouragement of excessive spending by minors.
Overseas expansion accelerates
Pop Mart emphasized that IP is central to its strategy and announced continued global expansion. Asia-Pacific (excluding China) was the largest overseas market with a 257.8% rise in revenue to 2.85 billion yuan. Revenue in the Americas jumped over 1,000% to 2.26 billion yuan. The company has rallied over 200% year-to-date, according to LSEG data.
