Pop Mart Q3 revenue surges despite investor concerns over growth sustainability

Chinese toy retailer Pop Mart (9992) reported on Tuesday that its third-quarter revenue grew as much as 2.5 times, after its shares fell 8 percent the same day amid investor concerns over its ability to sustain strong growth on a high base.

The company, known for its hit Labubu dolls, said revenue in the Chinese market increased by up to 190 percent during the quarter, while overseas revenue jumped by up to 370 percent.

Among overseas markets, American sales climbed by up to 12.7 times.

This follows a robust first-half performance where total revenue rose 204 percent compared to the same period a year earlier. 

Business in China and the Asia Pacific region grew by 135 percent and 258 percent, respectively, with sales in America surging 11.42 times.

Analysts noted that Pop Mart’s expanding base is leading some investors to question whether it can maintain the high growth pace seen in the first half. These concerns persist even though new product releases, such as items from its Twinkle Twinkle brand, often sell out quickly.

Earlier, resale price of a hidden toy in the Twinkle Twinkle collection reportedly soared 15 times before the rollout night, marking one of highest premiums for Pop Mart.

The hidden item, priced at 59 yuan (HK$64.33) was resold for up to 929 yuan, mainland media said.

Shares of Pop Mart closed at HK$250.4 yesterday, down 8.08 percent. They have marched 182 percent this year.