Shares of Labubu Company Plunge Despite Strong Sales, Why?
Jakarta, CNBC Indonesia - Shares of Pop Mart International Group, the producer of the viral Labubu toys, experienced the largest decline in nearly a year on Wednesday (25/3). This came after the company reported its 2025 revenue.
Pop Mart shares, listed on the Hong Kong Stock Exchange, fell more than 20% after the market break, as reported by Reuters.
The Beijing-based company stated that its 2025 revenue increased 185% from the previous year, reaching 37.12 billion yuan (US$5.38 billion).
Analyst Reactions and Investor Concerns
Morningstar analyst Jeff Zhang said the annual revenue and profit growth missed consensus estimates from analysts, with a significant slowdown in the fourth quarter. This reinforces investor concerns about how long Labubu’s success will last.
“The dividend payout dropping to 25% in 2025 from 35% in 2024 is another negative for investors,” Zhang said. “Pop Mart has also expanded its licensing business and amusement park operations, but we believe execution risks remain high.”
Wang Ning, chairman and chief executive of Pop Mart, said the company expects at least 20% revenue growth from the previous year in 2026.
“We will not pursue overly aggressive growth that boosts revenue at the expense of profitability,” Wang told analysts and investors.
Pop Mart said it will continue to expand its products, including household items up to an amusement park in Beijing set to open in the summer, according to executives.
The company’s 2025 revenue nearly tripled from the previous year to 37.12 billion yuan from 13.04 billion yuan. The company reported attributable profit to owners of 12.78 billion yuan, up 308% from 3.13 billion yuan the previous year.
In January, Pop Mart said it had increased production capacity in Mexico, Cambodia, and Indonesia to support demand and strengthen supply chain resilience.
The company also said it plans to make London its European headquarters. Pop Mart has partnered with Sony Pictures to develop a film about Labubu, to bolster its overseas market expansion.