Shares of Pop Mart fell over 4% in Hong Kong on Friday after the Labubu maker reported first-half results that showed declining sales in Asia-Pacific and the Americas. For the period ended June 30, the toy maker reported a 23.8% year-over-year rise in first-half revenue to 17.17 billion yuan, but revenue in Asia Pacific ex-China fell 9.7% and dropped 16.5% in the Americas, while revenue in China jumped 47.3%. Citi said the results came in below expectations, citing pressure in overseas markets where sales declined 11% year over year, and the bank now expects Pop Mart's group revenue to decline 8% year-over-year in 2026 and lowered its price target to HK$198. Citi said management now sees its initial 20% revenue growth target for 2026 as difficult to achieve, given more challenges than expected and competitive pressure. The shares were recently down 3.9% to HK$147.70.
Pop Mart International Group LtdCiti cuts price target and expects revenue decline due to weak overseas sales.
