Pop Mart Stock Plunges After Q3 Revenue Falls Up to 50% on Fading Labubu Craze

Shares of Pop Mart International Group Ltd (HK:9992) plunged as much as 6% to an 18-month low on Wednesday after the company disclosed a sharp drop in third-quarter sales. The collectible toy maker attributed the decline to cooling demand for its flagship Labubu product line.

In a trading update released Tuesday evening, Pop Mart announced that its unaudited revenue for the third quarter of 2026 is expected to have fallen between 45% and 50% year-on-year. The stock fell to as low as HK$123.8 in Wednesday's trading session following the news.

Broad-Based Sales Decline

The revenue downturn affected all of the company's geographic markets, with international sales experiencing the most significant contractions. The Americas recorded the steepest drop, with sales falling between 70% and 75% compared to the same period last year.

Other key regional declines reported by the company include:

• Asia-Pacific (excluding China): Revenue down 65% to 70%
• Europe and other regions: Revenue down 50% to 55%
• Mainland China: A comparatively smaller decline of 25% to 30%

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Within its home market of China, Pop Mart's online sales channel was hit particularly hard, with revenue falling between 45% and 50% year-on-year.

Impact of a Fading Fad

The severe drop in sales underscores the company's reliance on the success of its Labubu figurines. The product line had previously fueled significant growth for Pop Mart during a viral trend that has since faded.

According to the source, the company has not yet launched a follow-up product to replicate the success of the Labubu craze. This sales update highlights the risks for investors in trend-driven consumer product companies, where sustained growth often depends on the ability to consistently generate new hit products.