Pop Mart's shares have continued to decline, adding to a more than 30% drop this year, following a disappointing third-quarter revenue report. The company disclosed a year-on-year revenue decrease of 45% to 50%, which was worse than analysts' expectations of a 30% decline.
This downturn is particularly pronounced in international markets, with revenue in the Americas falling by 70% to 75%, and Asia-Pacific sales dropping by 65% to 70%. Even in mainland China, revenue decreased by 25% to 30%.
Jefferies, the brokerage firm, noted that these results were in line with broader buy-side expectations but still prompted them to reduce earnings estimates for 2027 and 2028 by 9% to 12%, citing ongoing pressure on profitability due to weaker overseas sales.
Looking ahead, while fourth-quarter revenue is projected to increase by 3% from the previous quarter, it is expected to remain 34% lower than the same period last year.
Despite these challenges, Pop Mart is pursuing global expansion, focusing on flagship stores in major cities like New York, Milan, and Paris, and is diversifying its product offerings beyond Labubu with new brands such as SKULLPANDA, Hirono, and Twinkle Twinkle gaining traction internationally