Labubu Carries Pop Mart Stock to All-Time High

Shares of Pop Mart International Group Ltd. soared to an all-time high following a robust half-year earnings report, driven by strong demand for its Labubu plushies in the U.S. and other overseas markets. The company reported a 385.6% year-on-year profit surge to nearly 4.7 billion yuan ($654.9 million) and a 204.4% rise in revenue to almost 13.9 billion yuan for the first half of 2025.[para. 1][para. 2] Notably, revenue from the Americas rose more than twelvefold compared to the first half of 2024, while sales in Europe and other regions (excluding Asia-Pacific) jumped more than eightfold.[para. 3] This financial performance lifted the company’s shares by over 12.5%, briefly reaching HK$318.4, the highest since its December 2020 IPO, and closing at HK$316.[para. 4]

Chairman and CEO Wang Ning stated that the company remains on track to meet its 2025 revenue target of 20 billion yuan and voiced confidence in reaching as high as 30 billion yuan this year.[para. 5] Pop Mart’s rapid growth is largely attributed to its proprietary IP, particularly “The Monsters” toy line featuring the Labubu character. Labubu led as the brand’s top-selling product, generating 4.81 billion yuan in revenue in the first half of 2025—a more than sevenfold increase from the previous year.[para. 6] Since 2024, Labubu’s unique charm—its large cute eyes and creepy, sharp-toothed smile—has sparked a global craze, resulting in bidding wars and long lines at stores, catapulting Pop Mart to be one of the world’s most valuable IP firms.[para. 7]

Nonetheless, there have been concerns about waning demand for Labubu. After the initial sell-out of the third-generation Labubu dolls, a restock and introduction of preorders led to a drop in their average second-hand market price.[para. 8] Prior to the earnings release, Pop Mart’s stock was trading between HK$240 and HK$285 for two months and had fallen even after a bullish earnings forecast in mid-July.[para. 9] Some domestic investors are now more cautious regarding Pop Mart's prospects, as noted by Bin Yuan Capital Ltd. analyst Xu Junyi.[para. 10]

To address these concerns, Wang expressed optimism that Labubu could achieve iconic IP status akin to Mickey Mouse or Hello Kitty, retaining value even after its popularity peak passes.[para. 11] He also revealed a forthcoming mini Labubu, designed to be attached to phones, projecting strong demand for the new release.[para. 12] Pop Mart is intensifying its international expansion, particularly targeting the Middle East, Central Europe, and Central and South America using a hybrid of brick-and-mortar and online direct-to-consumer channels.[para. 13][para. 17] The company operated 128 overseas stores as of June 2025, up from 58 a year prior, with store revenue almost doubling year-on-year. Vice President Wen Deyi forecasts store count exceeding 200 by year’s end, with three new stores opening weekly.[para. 15][para. 16]

While U.S. expansion remains a primary focus due to high demand and limited quality competition, Pop Mart plans to grow carefully, prioritizing quality over speed. Chief Operating Officer Si De highlighted that livestreaming, especially on TikTok, has fueled U.S. sales, with the company frequently ranking among the top sellers. Celebrity endorsements, especially from Rihanna, Dua Lipa, and Lisa of Blackpink, have further boosted the brand’s overseas visibility and growth.[para. 18][para. 20][para. 21]