Pop Mart's Q3 Revenue Nearly Halved as Labubu's Popularity Fades
Pop Mart filed with the Hong Kong Stock Exchange on October 27, reporting a 45%-50% year-on-year revenue drop in Q3 as Labubu's popularity waned. Sales fell 70%-75% in the U.S., 65%-70% in the Asia-Pacific region excluding China, and 50%-55% in Europe and other areas. China's offline stores saw a 5%-10% decline, while online channels dropped 45%-50%. The company noted that trends stabilized in October and that achieving year-on-year growth in China "should not be difficult." However, a decline…
Pop Mart submitted documents to the Hong Kong Stock Exchange on October 27, stating that its third-quarter revenue fell by 45% to 50% year-on-year as the popularity of Labubu waned. Sales in the United States dropped by 70% to 75%, the Asia-Pacific region outside China fell by 65% to 70%, and Europe and other regions saw a decline of 50% to 55%. Meanwhile, sales in mainland China's physical stores decreased by 5% to 10%, while online channels fell by 45% to 50%.
The company said that trends stabilized in October and that achieving year-on-year growth in the China region for the full year "should not be difficult." However, the proportion of high-margin sales overseas has declined, and the gross profit margin for the second half of the year is expected to narrow by up to 2 percentage points compared to the first half.
Source: Nikkei Asia
