Pop Mart shares slide as its dependence on Labubu makes investors nervous

Shares of Pop Mart International Group Ltd., the Chinese toymaker whose Labubu monsters became a global sensation last year, have come under sustained pressure. Over five trading sessions following the company’s latest earnings report, its share price declined by more than 30%, continuing a broader downturn from its August peak. The company has now lost nearly 60% of its market value, or about $33 billion in capitalization, Bloomberg reported.

Investor sentiment has weakened as results highlighted the company’s growing reliance on its Labubu character. The Labubu-led Monsters series accounted for around 40% of total revenue last year, up significantly from the previous year, while other products failed to deliver comparable growth.

Analysts have pointed to multiple concerns, including slowing sales in both domestic and overseas markets, rising inventory levels and downward revisions to earnings expectations. In addition, inventory turnover days increased to 123 days by the end of 2025, reflecting logistical challenges and expanded international operations, Bloomberg said.

Pop Mart is diversifying its portfolio by promoting characters such as Crybaby and Molly. The company has also introduced new characters and collaborations while expanding its global reach through partnerships and planned media projects.

However, these efforts have yet to significantly offset reliance on Labubu. Analysts believe that if the company can sustain interest in its existing intellectual property and develop new successful characters, investor confidence may recover.