Particle.news
Download on the App Store

Pop Mart Slides as Labubu Reliance Triggers Selloff

Investor doubt over a Labubu-heavy model now outweighs blockbuster growth.

Overview

  • The Hong Kong-listed toymaker’s shares fell about 30% over recent sessions after the March 25 results, extending a drop to roughly 60% from August and erasing about US$33 billion in value.
  • The results showed 2025 revenue jumped 184.7% to 37.12 billion yuan, yet The Monsters line led by Labubu made up about 40% of sales as other flagship characters slowed.
  • Pop Mart has repurchased shares for six straight days since March 26, spending about HK$1.4 billion, but the stock still fell 16% over that stretch and closed Thursday at HK$141.80.
  • Bearish bets have grown, with 123 million shares sold short, up 16% from before the results, and put option trading hit a record on April 1.
  • Management is pushing new characters, crossovers, and a Labubu film announced with Sony on March 19, yet inventory days rose to 123 at year-end and fresh downgrades signal persistent skepticism.