Pop Mart Earnings Preview: Can Thursday’s Results Prove Growth Beyond the Labubu Boom?
Pop Mart International Group is set to announce its 2026 interim results on August 20, with investors keen to see if the company can maintain its growth trajectory following the massive success of its Labubu collectibles. Analysts expect the company to report a first-half revenue of RMB19.98 billion, marking a 44% increase from RMB13.88 billion the previous year, and an adjusted net profit of RMB5.98 billion, up 27% from RMB4.71 billion.
Key Takeaways
The upcoming report will be crucial in determining whether Pop Mart can sustain its strong domestic sales and international expansion amidst a potential slowdown following the Labubu boom. Investors will be particularly interested in the performance of The Monsters franchise, overseas store productivity, profit margins, and management's strategy for developing new flagship intellectual properties.
Pop Mart's Strategic Shift
Entering 2026, Pop Mart adopted a conservative growth outlook after a remarkable 2025, where revenue surged by 184.7% to RMB37.12 billion and net profit increased by 293.3% to RMB13.01 billion. CEO Wang Ning described 2026 as a year for consolidation, likening the strategy to a Formula One car taking a pit stop. The company set a full-year growth target of at least 20%, a significant reduction from the previous year's explosive growth, which initially caused concern among investors.
Performance in 2026
Despite initial concerns, Pop Mart's first-quarter results exceeded expectations, with unaudited revenue growth of 75%-80% year-over-year, including a remarkable 100%-105% growth in mainland China. Online sales in China surged by 150%-155%, while offline sales rose by 75%-80%.
Dependence on Labubu
A critical question for investors is whether Pop Mart can diversify its intellectual property portfolio beyond Labubu, which generated RMB14.16 billion in 2025, accounting for 38% of total revenue. While projections suggest The Monsters franchise could generate RMB14.51 billion in 2026, its revenue contribution is expected to decline to about 33.3%. This decline could be a concern if it indicates weakening Labubu sales without the emergence of new hits.
International Growth Focus
International sales, which made up 43.8% of revenue in 2025, are another area of focus. The Americas saw a staggering 748.4% revenue increase to RMB6.81 billion. However, growth rates have slowed in 2026, with revenue increases of 55%-60% in the Americas and 60%-65% in Europe. Analysts expect mainland China to contribute RMB12.05 billion in revenue for the first half of 2026.
New Business Ventures
Pop Mart is also exploring new business avenues to enhance customer engagement and extend the lifecycle of its characters. Initiatives like POP BAKERY and the POP LAND amusement project are in development, although they may require significant investment and are not expected to contribute substantially in the short term.
Conclusion
The upcoming earnings report will be pivotal in demonstrating whether Pop Mart can transform its viral success into sustainable earnings. Investors will be looking for signs of improved intellectual property diversification, disciplined international expansion, and the ability to maintain growth as the Labubu phenomenon matures.