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Shares in Pop Mart soared over 12.5% in daily trading in Hong Kong on Wednesday after the Chinese company released stellar earnings.
The creator of the Labubu doll saw its revenue jump 204% year-on-year in the first half of 2025, coming in at 13.88 billion yuan (€1.66bn). Net profit soared 386% to 4.68bn yuan (€559.39 million), beating forecasts.
Around 40% of sales were made up by purchases outside of mainland China thanks to the international appeal of the firm’s Labubu brand, part of its “The Monsters” range.
“The Monsters” brought in 4.81bn yuan (€574.99mn) in the first half of the year, accounting for 34.7% of total revenue.
The elf-like dolls have become a viral sensation, boosted by the endorsement of celebrities like Dua Lipa, Kim Kardashian and David Beckham.
Part of the attraction is that the toys are sold in blind-box packaging. This means that customers don’t know what they have purchased until they open the product.
Although the firm was created back in 2010, Pop Mart launched its first blind-box series in 2016. The popularity of the range allowed the company to list in Hong Kong in December 2020, achieving a market capitalisation of around €6bn. Since the IPO, shares have risen by over 300%.
Pop Mart opened its first European store in London in January 2022, hoping to expand in overseas markets. Today, the company operates around 2,600 vending machines and almost 600 stores across the globe, meaning Labubu dolls can be bought in more than 30 countries.
Given the demand for dolls, Pop Mart is now considering expansion in the Middle East, Central Europe, and Central and South America. The firm operates around 40 stores in the US, with 10 more sites expected to open by the end of 2025.
In an earnings call on Wednesday, CEO Wang Ning also said that Pop Mart would this week launch a new, mini version of Labubu that can be attached to phones.
Wang added that his firm was on track to meet its 2025 revenue goal of 20bn yuan (€2.39bn), noting that “30bn this year should also be quite easy”.
Some analysts have nonetheless raised doubts over the sustainability of the company’s rise, driven by social media sites like TikTok.
“The craze for the elf-like Labubu dolls is translating into big profit and cash flow,” said AJ Bell head of financial analysis, Danni Hewson. ““Consumers can be capricious when it comes to this type of fad though and Pop Mart will have to work hard to build on this success if it is to avoid being a one-hit wonder.”
