Pop Mart is cashing in on the viral success of its Labubu dolls.
The Beijing-based toy company is on track to smash its revenue goal of $2.78 billion in 2025, and hitting $4.18 billion this year “should also be quite easy,” CEO Wang Ning told analysts on Tuesday.
Wang’s call followed Pop Mart announcing record results for the first half of the year. Net profit soared nearly 400% amid surging demand for the dolls, particularly in higher-margin markets like North America and Asia Pacific, regions where collective sales so far this year would together equal China in 2024.
Shares in Pop Mart trading on the Hong Kong Stock Exchange closed 15% higher on Wednesday, rounding off gains of 655% over the past year.
“I think for overseas markets we’re still very positive, and we also believe there’s still very broad space for growth,” Wang said. The company will commence a phase of “relatively rapid store openings” over the next year or two, he adds, with 10 further U.S. stores set to open by the end of 2025, where the company already has 40 in operation. Executives also noted that expansion into emerging markets in Central and South America, the Middle East, and Central Europe was also being explored.
The Labubu craze took off in April 2024, when K-pop star Lisa of Blackpink showcased a keychain on her bag . Adoption soared after a number of celebrity endorsements, driving fans to line up for surprise packaging, known as the “blind-box” format, and collect rare variants.
Pop Mart has seen staggering growth — Labubu revenue grew over 1,200% year-on-year in 2024, contributing roughly 22% of the company’s total revenue last year.
However, as with past toy fads, such as Beanie Babies, the consensus is that Labubu’s explosive rise likely won’t be forever. Many industry voices expect the craze may start fading by the end of 2025, calling into question if revenue can sustain and thus whether expansion will offer a return-on-investment.
finance.yahoo.com
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