Full Breakdown
Pop Mart’s Third-Quarter 2026 Sales Collapse Highlights Labubu’s Waning Appeal
By Drooid · · How we work
In this breakdown
01
Background: Labubu’s Rise and Recent Fade
The Labubu plush—snaggle-toothed monster design—went viral after its 2024 launch, boosted by K-pop idols, Hollywood celebrities and social-media buzz. The craze peaked in 2025 with record queues at flagship stores worldwide and revenue growth of roughly 250% year-on-year. Pop Mart International Group Ltd., the Chinese toymaker behind Labubu, built a global retail network that includes flagship locations in Shanghai, Hong Kong, New York, Milan and Paris.
02
Quarterly Performance – Who, What, When, Where, How
In the three months ended September 2026, Pop Mart disclosed an unaudited revenue decline of 45% to 50% versus the same period in 2025. Shares fell as much as 6% in early Hong Kong trading, extending a sell-off that has erased roughly $35 billion in market value since the 2025 peak.
Visual evidence
Images from the story
03
Regional Revenue Declines – Data Summary
- China: revenue fell 25% to 30%; online sales dropped 45% to 50%.
- Americas: sales slumped 70% to 75%.
- Asia-Pacific (ex-China): revenue contracted 65% to 70%.
- Europe and other regions: revenue decreased 50% to 55%.
These figures are reported by CNBC, Bloomberg, Investing.com, NSS Magazine and The Straits Times.
04
Company Response and Analyst Outlook
COO Si De said the China market is expected to achieve full-year growth in 2026 and overseas markets should stabilise from the third quarter into the peak season. The firm opened a three-storey flagship near West Lake in Hangzhou and a European flagship on Boulevard Haussmann in Paris during the quarter. New flagship stores are slated for Milan in early 2027, a second Paris location thereafter, and a New York flagship by year-end.
Analysts are cautious. HSBC Holdings Plc cut its 2027 and 2028 revenue forecasts by 8% and 9%, citing a “longer road to stabilisation.” JPMorgan Chase & Co. analyst Jessie Xu warned investors need stronger evidence of “normalised” store productivity before re-entering the stock. Morgan Stanley analyst Dustin Wei projected overseas operations could regain momentum in Q2 2027 but noted the share price had already slumped about 60% from its 2025 high.
05
What’s Next for Pop Mart
- Retail expansion: Milan flagship in early 2027; second Paris flagship planned.
- U.S. rollout: New York flagship expected by year-end, another U.S. flagship in early 2027.
- Product pipeline: Diversification beyond Labubu with newer characters, though commercial performance is unquantified.
- Analyst expectations: Modest recovery in overseas markets by Q2 2027, contingent on renewed consumer interest and improved store productivity.
The sharp contraction in Q3 2026 underscores the volatility of viral-trend-driven business models and raises questions about Pop Mart’s ability to sustain growth without a next-generation hit comparable to Labubu.