"Global Expansion on Fire!" POP MART Q3 Revenue Soars 250%, Overseas Markets Become New Growth Engine

TradingKey - Leading toy brand POP MART (9992.HK) released its earnings preview for the third quarter of 2025, reporting a staggering 245% to 250% year-on-year increase in total revenue, continuing its strong growth momentum. However, ahead of the announcement, POP MART shares plunged over 8% — their largest single-day drop since early April — leading the decline in the Hang Seng China Enterprises Index.

The company’s overseas markets delivered particularly impressive results, with revenue surging 365% to 370% year-on-year, emerging as the core driver of growth. The Americas region exploded by 1,265% to 1,270%, while Europe and other regions grew 735% to 740%, and the Asia-Pacific market expanded 170% to 175%.

This surge is primarily fueled by the global popularity of its hit IP series “Labubu.” The plush toys from this line have not only captured the hearts of consumers worldwide but have also become trendy accessories worn by celebrities and influencers, continuously igniting consumer enthusiasm.

Regionally, mainland China saw revenue grow 185% to 190%; by channel, online sales in China surged 300% to 305%, far outpacing the 130% to 135% growth seen in offline channels — highlighting the success of its digital transformation.

In the first half of 2025, POP MART achieved a 204% year-on-year revenue jump driven by the Labubu craze, cementing its “growth miracle.” However, despite still-record-breaking growth in Q3, some investors believe the pace may be moderating compared to the first half and are beginning to question the sustainability of its reliance on blockbuster IPs.

Jeff Zhang, analyst at Morningstar, noted that the market has already priced in a more conservative growth outlook. While new products like Labubu and Twinkle Twinkle continue to sell out, doubts remain about whether the company can replicate the explosive growth seen in the first half.