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Pop Mart Q3 revenue falls as Labubu-maker shares keep sliding
CNBC reported Pop Mart said third-quarter revenue dropped 45% to 50% year on year, with Americas sales down 70% to 75%, as shares extended this year's decline.
- New headline Was: “Labubu-maker Pop Mart's shares extend declines as third-quarter sales plunge”
- Our desk filed its story
Shares of Chinese toy company Pop Mart, known for Labubu dolls, extended this year's decline after the company reported a 45% to 50% year-on-year drop in third-quarter revenue, CNBC reported, citing a Hong Kong exchange filing dated Tuesday1.
CNBC said the stock was last down under 2% after falling more than 6% in early trading Wednesday, and has closed lower in 9 of the past 12 sessions, adding to a more than 30% drop so far this year1.
The sales drop was steepest outside mainland China, according to CNBC's account of the filing: revenue in the Americas plunged 70% to 75%, Asia-Pacific sales dropped 65% to 70%, Europe and other regions fell 50% to 55%, and mainland China revenue fell 25% to 30%1.
Jefferies told CNBC the results were weaker than estimates of a 30% revenue decline, though broadly in line with buy-side expectations, and cut Pop Mart's 2027 and 2028 earnings estimates by 9% to 12%, citing weaker overseas sales and pressure on profitability1.
Jefferies expects fourth-quarter revenue to rise 3% from the previous quarter but remain 34% below year-earlier levels, CNBC reported1.
Pop Mart is still expanding globally, with more focus on flagship stores in cities including New York, Milan and Paris, and is promoting other intellectual properties besides Labubu, including SKULLPANDA, Hirono and Twinkle Twinkle, according to Jefferies as cited by CNBC1.
