Chinese toymaker Pop Mart International forecasts that its net profit for the six months ended 30 June will surge by at least 350% from a year earlier, with revenue expected to rise more than 200% to roughly RMB 13.7 billion. In a filing to the Hong Kong stock exchange, the company put adjusted net profit at about RMB 4.5 billion, lifting its interim net margin to around 32%.
The earnings outlook is driven by the runaway global demand for Labubu—the pointy-eared, sharp-toothed plush dolls sold largely through limited “blind-box” drops. Overseas markets contributed nearly 40% of Pop Mart’s 2024 sales, and a life-size Labubu fetched US$150,000 at a Beijing auction last month. Gross margins reached 67% last year, far above most mass-market retailers.
Despite the bullish guidance, Pop Mart’s Hong Kong-listed shares fell about 6% after the announcement, though they remain roughly 600% higher than a year ago, valuing the firm at more than US$40 billion. JPMorgan and Nomura reiterated positive views, citing the company’s high profitability and plans to add 100 overseas stores in 2025.
The boom has brought challenges. Authorities seized more than 46,000 counterfeit Labubu dolls in June, prompting Pop Mart to apply for a “Lafufu” trademark to pre-empt knock-offs. Regulators are also scrutinising the blind-box sales model for encouraging excessive spending, a risk highlighted by investors following this week’s share-price pullback.
Created by Hong Kong artist Kasing Lung and licensed to Pop Mart in 2019, Labubu has become one of China’s most successful cultural exports. Endorsements from Rihanna, Blackpink’s Lisa and other celebrities have helped turn the doll into a status symbol, underscoring Beijing’s growing soft-power reach through consumer brands.
