Pop Mart’s earnings have turned out to be a major disappointment!
Just now, Pop Mart released its 2026 interim results. The numbers show that first-half revenue came in at RMB 17.173 billion, up 23.8% year over year but well below the market expectation of RMB 19.975 billion. Adjusted net income was RMB 5.156 billion, also significantly below the expected RMB 6.665 billion.
In the first half of 2026, The Monsters, which includes Labubu, generated RMB 4.45 billion in revenue. Twinkle Twinkle generated RMB 2.65 billion, while Crybaby generated RMB 1.63 billion.
By region, Pop Mart’s domestic revenue for the first half of the year was RMB 12.2 billion, revenue from the Asia-Pacific region totaled RMB 2.58 billion, revenue from Americas totaled RMB1.89 billion, and revenue from Europe and other regions totaled RMB 0.51 billion. Overseas revenue fell significantly short of expectations across the board. $POP MART(09992)$
The significant earnings miss was mainly due to the fact that Labubu’s overseas breakout in May last year significantly raised market expectations. This year, however, as the Labubu craze has gradually cooled, the growth momentum of Labubu-related business has weakened, resulting in a significant gap between actual results and elevated market expectations.
Pop Mart’s stock has had a weak performance this year, falling 16.7% and significantly underperforming the Hang Seng Index. Although well-known investor Duan Yongping has made substantial purchases of Pop Mart shares, the stock closed at RMB 153.7 ahead of the earnings release, close to its year-to-date low of RMB 137.6. This suggests that concerns over the company’s earnings performance had already been largely reflected in the share price.
Pop Mart founder and CEO Wang Ning said at today’s earnings meeting that the company will likely fall short of its 20% growth target set at the beginning of the year.
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