By Sherry Qin

Pop Mart's shares continued to sink, as the waning Labubu hype raised concerns about the longevity of the company's rapid growth.

The Chinese toy maker's shares declined 11% in afternoon trading Thursday, taking losses to nearly 20% so far this week, on track for its largest weekly percentage loss since July 2022.

Its shares were trading at 149.90 Hong Kong dollars, equivalent to US$19.17, Thursday afternoon, down more that 50% from its peak of HK$335.40 in August.

Despite blockbuster 2025 revenue and net profit growth, Pop Mart's overseas markets, which have been driving growth, recorded sequentially lower revenue in the fourth quarter.

Following the disappointing overseas performance, Pop Mart's management issued a revenue growth target of at least 20% for 2026, sharply weaker compared with a more-than tripling of its top line last year.

Global brokerages including Citi and HSBC have cut their target prices for Pop Mart's stock after the 2025 results, with Deutsche Bank also lowering its rating for the stock to sell from hold.

As collectible intellectual property is a cyclical business, Labubu may have already peaked, DB analyst Sammi Xu said in a note, adding that Pop Mart doesn't have other blockbuster IPs currently.

Pop Mart relies heavily on the Monsters collection, which includes Labubus and contributed 38% of total revenue last year.

Write to Sherry Qin at sherry.qin@wsj.com

(END) Dow Jones Newswires

March 26, 2026 03:37 ET (07:37 GMT)

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