Pop Mart’s stock price slid about 30% after it revealed its heavy reliance on its “The Monsters” IP, which includes Labubu.
The Chinese toymaker’s 2025 annual report, released on March 25, revealed that “The Monsters” accounted for about 40% of the company’s revenue. The IP earned 14.16 billion Chinese yuan, or about $2 billion.
But in 2024, the same IP accounted for only 23% of the company’s revenue, with sales of 3.04 billion yuan. Meanwhile, the proportion of revenue from its other popular IPs, Skullpanda and Crybaby, was lower in 2025 compared to 2024.
By sales figures, Pop Mart had a blockbuster year. It posted a total sales growth of 184.7%, with its revenue rising from 13.04 billion yuan to 37.12 billion yuan. Jefferies, in a March 25 note, maintained its “buy” rating on the stock and said that the company’s growth outlook looks “solid.”
Still, Pop Mart’s stock price has dropped about 30% since the earnings were announced. It is already down about 60% from its August high.
The news comes after Labubu has enjoyed more than a year of viral success, driven by the collectibles boom and blind-box mania. But the bubble looks like it’s close to bursting — data from the Chinese resale site Qiandao in October showed that mini Labubu resale prices had fallen below their retail prices.
Pop Mart has been proactively extending Labubu’s lifespan through collaborations with evergreen IPs like Hello Kitty and My Melody.
In the same vein, Pop Mart announced on March 19 that it would be creating a Labubu movie with Sony Pictures Entertainment. It will be directed by Paul King, the director of “Paddington” and “Wonka,” with Labubu creator Kasing Lung and American playwright Steven Levenson writing the screenplay.
Pop Mart’s representatives did not respond to a request for comment from Business Insider.
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