Pop Mart warned investors that the third quarter would be ugly and now it shows. 

The company said in its voluntary business update that revenue for the three months to September fell 45 to 50 per cent a year earlier, with all regions going backward.

Sales in the Americas dropped 70 to 75 per cent, Asia-Pacific outside mainland China fell 65 to 70 per cent, and Europe and other markets declined 50 to 55 per cent. Mainland China, by far the steadiest part of the business, slipped 25 to 30 per cent. 

Investors had braced for a fall, just not one this steep. JPMorgan had pencilled in a decline of about 37 per cent in a note published on October 21. When trading opened on October 28, Pop Mart shares dropped as much as 6 per cent to HK$123.80, an 18-month low. CNBC noted the stock has now lost more than 30 per cent this year. 

However, the damage was foreseeable. The third quarter of 2025 was the biggest in Pop Mart’s history. Revenue that quarter rose 245 to 250 per cent, with overseas sales up 365 to 370 per cent, as Labubu’s plush bag charms moved from collector shelves and onto handbags around the world. 

On the analyst call, chief operating officer Si De named that comparison as the main reason for this year’s decline.

If third-quarter revenue rose about three-and-a-half times in 2025 and has now roughly halved, Pop Mart is still selling around 70 to 90 per cent more than it did in the same quarter of 2024.

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