A PopMart Labubu The Monsters doll dangles from an influencer’s handbag during a press preview outside an AliExpress pop-up store on November 11, 2025 in London, UK.
Isabel Infantes | Reuters
pop mart stock It lost more than a fifth of its value on Wednesday, as concerns about the sustainability of the company’s Luvbu plush-led growth overshadowed its blockbuster annual results.
The plunge came after the Beijing-based toymaker forecast annual sales in 2025 of 37.1 billion yuan ($5.4 billion), up 185% from a year earlier, slightly below LSEG’s forecast of 38 billion yuan. Net profit more than quadrupled to 12.8 billion yuan, slightly exceeding expectations of 12.6 billion yuan.
Despite the strong headline numbers, “the significant slowdown in the fourth quarter amplified investors’ concerns about the sustainability of top IP’s popularity,” Morningstar equity analyst Jeff Chan said, adding that a drop in the 2025 payout ratio to 25% from 35% a year ago was also a negative factor.
pop mart international
Lovebu, the intertwined-toothed monster doll that became a global collector’s phenomenon, remains the company’s main growth engine. But Popmart’s chances of replicating its success with new characters like Skull Panda and Twinkle Twinkle are under intense scrutiny from investors as the momentum that drove the stock’s massive rally over the past two years begins to wane.
Skullpanda’s sales more than doubled to 3.54 billion yuan, while Crybaby and Dimoo’s sales each nearly tripled. However, The Monsters, the IP family that houses Labubu, remains a significant contributor to total annual revenue at 38%, compared to 23% in 2024.
New additions to the roster, Twinkle Twinkle and hirono, had sales of 2.06 billion yuan and 1.74 billion yuan, respectively, significantly lower than the 14.2 billion sales of the Monster family.
Billy Leung, an analyst at Global
CEO Wang Ning said in an earnings conference that “Pop Mart has more than just Labubu,” and tried to calm the market by likening expectations for the company to “a rookie racing driver who is suddenly thrown onto an F1 circuit.”
Sean Lane, managing director of China Market Research Group, said PopMart’s decline also reflected a long period of cautious sentiment since last year.
Investors who had built up short positions over the past six months, betting that PopMart’s appeal was a short-term fad, unwinded their positions on Tuesday, contributing to the decline, Lane said.
PopMart stock has lost some momentum after a long rally, retreating about 50% from its August highs. The stock is up more than 340% in 2024 and nearly 110% last year.
—CNBC’s Elaine Yu contributed to this report.
