Pop Mart International Group is unlikely to meet its 20% growth target for 2026 despite strong revenue increases, as a significant drop in international sales impacts the company’s performance, according to the CEO yesterday.
In the first half of the year, Pop Mart’s total revenue increased by 23.8% year-over-year to 17.1 billion yuan (approximately $2.5 billion). However, its overseas revenue declined by 11.6% to 5 billion yuan (around $740 million).
“Even though we saw over 20% growth in the first six months, last year’s third quarter had an exceptionally high comparison base. This indicates that the pressure in the second half of the year will likely be greater than in the first,” said the CEO and founder. “We’re not planning to pursue aggressive expansion, so meeting the initial 20% annual growth goal may not be feasible. Nonetheless, I believe our overall management and financial health are much stronger than last year.”
Revenue from China increased sharply, rising 47.3% in the first half from the previous year to 12.2 billion yuan (about $1.8 billion), representing 71% of total revenue. Conversely, overseas markets experienced declines: Asia-Pacific revenue fell 9.7% to 2.6 billion yuan ($372 million), the Americas saw a 16.5% drop to 1.9 billion yuan, while Europe and other regions grew by 5.9% to 506 million yuan ($75.2 million).
The CFO noted that profits from international operations faced pressure this year. Factors include waning popularity of Labubu, the flagship furry elf character, overseas, plus the costs associated with opening numerous new stores abroad in the second half, including rent and staff expenses.
To demonstrate confidence in its long-term growth, the company announced plans to buy back shares valued between 2 billion and 5 billion yuan ($297.5 million to $744 million) over the next six months.
The company will continue improving selected stores in key markets worldwide. However, large-format stores are not central to its strategy; instead, it will open them selectively in major regions.
Regarding individual intellectual properties, The Monsters family, which features characters like Labubu, generated 4.4 billion yuan ($654.6 million) in revenue, down 7.5% year-over-year, and its share of total revenue declined from 34.7% to 26%. In contrast, Twinkle Twinkle, a star-themed character, experienced explosive growth, with revenue nearly septupling to 2.6 billion yuan ($386.8 million). Its contribution rose from 2.8% to 15.4%, making it the company’s second-largest IP.
Twinkle Twinkle has become highly popular across China and other Asian markets. The company plans to bring costume character performances of Twinkle Twinkle to Singapore and other regions to boost brand awareness and grow its international fan base.
The company’s stock closed 3% lower today at HKD 149 (about $19) on the Hong Kong Exchange.