Pop Mart International Group Limited (POP MART) saw its shares plummet nearly 10% at the open on December 8, marking its steepest drop in over six weeks. The decline comes amid renewed concerns over slowing sales growth in the U.S., with the stock now down roughly 40% from its peak.
Market analysts attribute the sell-off to worries about weaker-than-expected performance during the Black Friday promotional period. A Morningstar analyst noted, "Soft U.S. sales could undermine confidence in Pop Mart’s growth trajectory." This follows the company’s earlier disclosure of a staggering 1,200% year-on-year surge in Q3 U.S. sales, making overseas performance a key focus for investors.
The LABUBU doll maker’s stock has been volatile in recent months, with growing skepticism over its product diversification and lack of new revenue drivers. Short interest has climbed to 6.3% of its free float as of last Thursday—the highest since August 2023, per S&P Global data.
A Bernstein analyst covering Asian consumer stocks highlighted that November’s weak North American offline sales trends contributed significantly to the downturn. She estimates Pop Mart’s U.S. sales growth has slowed to below 500% this quarter.
Cinda Securities’ consumer team pointed out that Thanksgiving week sales showed no significant sequential growth, reflecting an unexpectedly muted holiday season. While supply chain bottlenecks eased mid-November, robust inventory failed to spur demand, leading to short-term underperformance.
Additionally, a wave of short-selling reports targeting short-term data fluctuations has intensified bearish sentiment. Some foreign institutions project a 10%-20% decline in Chinese and overseas markets next year, fueling valuation cuts and panic-driven selling.
Cinda Securities cautioned that high-frequency data—often based on sampled credit/debit card transactions and subject to revisions—does not fully reflect actual sales. Pop Mart has previously disputed third-party data accuracy, emphasizing its focus on serving genuine consumers rather than fueling speculative resale markets.
Excluding the U.S., Pop Mart’s growth in Europe, China, and Southeast Asia remains steady. Domestically, its *Starry Pops Christmas Gift Box* is driving strong Q4 sales, rivaling LABUBU’s popularity.
Analysts advise investors to focus on Pop Mart’s long-term business model and IP development, noting that short-term volatility is typical in the sector.
**A-Shares Rally** Meanwhile, China’s A-share market surged, with the ChiNext Index up 2.6%. Over 3,400 stocks gained, led by computing hardware firms like Tianfu Communication and Zhongji Innolight, while Fujian-based stocks such as Yonghui Superstores and Anji Food rallied sharply. Commercial aerospace plays also extended gains, with over a dozen stocks like Aerospace Power and Aerospace Science hitting limit-ups.
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