Pop Mart Shares Plunge to 18-Month Low on Steep Q3 Revenue Drop

Shares of Pop Mart International Group Ltd. (9992.HK) plunged as much as 6% on Wednesday, hitting an 18-month low of HK$123.8. The sell-off was triggered by the company's disclosure of unaudited third-quarter 2026 revenue, which plummeted by an estimated 45% to 50% year-on-year, signaling a sharp downturn in consumer demand for its collectible toys.

Broad-Based Sales Deterioration

The revenue decline was severe and widespread across all of the company's geographic segments. The report indicated that the viral craze surrounding its flagship Labubu figurines, which had previously fueled rapid growth, has significantly cooled. Pop Mart has reportedly struggled to launch a successful follow-up product line.

According to the unaudited figures:

• The Americas was the weakest region, with sales plummeting 70%–75%.
• Asia-Pacific (excluding China) saw a 65%–70% drop.
• Europe and other regions experienced a 50%–55% decline.
• Even the company's core market in mainland China was not immune, with revenue falling 25%–30%. The online channel in China was hit particularly hard, with sales down 45%–50%.

Ad

Analysts Slash Price Targets

In response to the bleak sales update, several investment banks swiftly revised their outlooks for the company. The negative revisions reflect concerns over weakening consumer sentiment and the company's product pipeline.

• Citi cut its price target on the stock to HK$162.
• Jefferies trimmed its target by approximately 10% to HK$132 and reduced its 2027–2028 earnings estimates by 9%–12%.
• CLSA made the most aggressive revision, slashing its target by 24% to HK$156 and cutting its multi-year net profit forecasts by 32%–35%.

Pop Mart's stock decline contrasted with the broader Hong Kong market, as the Hang Seng Index edged up 0.3% on Wednesday, underscoring that the sell-off was specific to the company's performance.