Pop Mart’s $POP MART(09992)$ latest earnings report has shaken up the entire industry. The Chinese toy company, best known for blind boxes like Labubu, reported first-half 2025 revenue of RMB 13.88 billion (US$1.93 billion), surging 204% year-on-year. Net profit skyrocketed 397% to RMB 4.57 billion — a growth curve that most retailers can only dream of.
The main driver behind this explosive growth is the rise of Labubu, the sharp-toothed, long-eared anti-hero character that has transformed from a niche symbol into a global trend. With higher pricing and stronger margins overseas, Labubu has significantly boosted the company’s profitability.
Source：Google Finance
Plush Toys Up Nearly 1300%
If there’s one phenomenon to define the first half of 2025, it has to be the global breakout of Labubu. Designed by artist Kasing Lung as part of The Monsters series, the grinning Labubu has become a favorite of celebrities like Rihanna and David Beckham, and is now sold out worldwide.
So far, the most popular item has been Labubu as a bag charm. This week, Pop Mart $POP MART(09992)$ will launch a mini Labubu that attaches to mobile phones, which is expected to set off another global craze.
Revenue from The Monsters series hit RMB 4.81 billion (US$670 million) in the first half, making up 34.7% of total sales. Pop Mart added that four other series — including Molly and Crybaby — each generated more than RMB 1 billion during the same period.
The real game-changer this year, though, was plush toys. Compared with last year when plush barely contributed, this year Labubu plush toys accounted for nearly half of the revenue growth, making it Pop Mart’s single most explosive product line.
The company said Labubu’s success has not only driven overall sales but also strengthened its brand recognition and influence globally. With the upcoming launch of the mini Labubu, management expects strong momentum to continue into the second half, further solidifying its leading position in the designer toy market.
Source: Pop Mart 2025 H1 Earnings
Overseas Expansion Could Surpass China
International expansion has been the most important strategy behind Pop Mart’s current boom. Thanks to Labubu’s global popularity, growth in the Americas has been nothing short of staggering, up 1,142% year-on-year.
The number of Pop Mart retail stores in the Americas grew from just 10 in the first half of 2024 to 41 in the first half of 2025. Overseas expansion remains a top priority. Founder and CEO Wang Ning said the company is entering a phase of “relatively rapid store openings” and plans to add another 10 U.S. stores by the end of the year. He also told Chinese media that international business growth has far exceeded internal expectations.
At the current pace, overseas sales may overtake China’s domestic sales in 2025. Within Asia, market focus is also shifting — North America may soon replace Southeast Asia as Pop Mart’s second-largest market. This month, the company opened a super flagship store in Bangkok’s ICONSIAM mall, and by year-end, it aims to add 100 more retail points overseas.
Source: Pop Mart 2025 H1 Earnings
Core Value: IP and Creative Design
IP operations and creative design are the core drivers of Pop Mart’s sustainable growth. As a global leader in designer toy IP, the company continues to scout talented artists and designers worldwide. With a mature IP management system, Pop Mart has successfully nurtured multiple beloved cultural icons.
By expanding its product range and continuously innovating in design, the company seeks to meet the diverse needs of fans and lead consumer trends, delivering joy and creativity worldwide.
In the first half of 2025, 13 artist IPs each generated over RMB 1 billion in revenue. Among them:The Monsters: RMB 4.81 billion; Molly: RMB 1.36 billion; Skullpanda: RMB 1.22 billion; Crybaby: RMB 1.22 billion; Dimoo: RMB 1.11 billion.
Labubu, as part of The Monsters family, has now grown into a world-class IP. Celebrating its 10th anniversary, the company rolled out the third-generation Labubu soft vinyl plush, “High Voltage Series,” which sparked a collector frenzy globally. The “Weird Convenience Store” figurine line also carried Labubu’s quirky “you can’t see me” personality, winning the hearts of fans.
Looking ahead, Pop Mart plans to keep deepening IP operations, launch more premium products, and further unlock the long-term value of Labubu, aiming to build it into a global top-tier IP with a long lifecycle.
Outlook and Challenges
In the near term, Pop Mart is expected to keep riding the Labubu craze and overseas expansion as strong growth catalysts. Longer term, there’s still plenty of room for imagination. The big questions are: how can the company maintain IP popularity, and how deeply can it penetrate overseas markets? These remain the key to unlocking greater value.
The company seems well aware of this. Beyond expanding its IP library and sustaining strong design innovation, it needs to build a long-term incubation and refined IP management model to preserve fan engagement and emotional connection. While Pop Mart has proven its strength in IP innovation and marketing, its ability to deliver sustainable content incubation has yet to be tested.
So far this year, the stock has surged over 230%, pushing Pop Mart’s market cap above US$50 billion — making it more valuable than Barbie-maker Mattel $Mattel(MAT)$ and Hello Kitty’s parent Sanrio $Sanrio Co. Ltd.(SNROY)$ . But sustainability is the real challenge: fading IP heat or a lack of new blockbusters could trigger a sharp correction in share price.
Invesight Viewpoint
Pop Mart’s first-half 2025 results were extraordinary, driven mainly by Labubu’s explosive global breakout, especially in the Americas where sales soared over 1,140%. The company’s market cap has now topped US$50 billion.
In the short run, Labubu’s popularity and international expansion remain strong catalysts. But as with all blockbuster IPs, natural cooling-off is inevitable. How Pop Mart manages to sustain this growth story will be an increasingly tough challenge. The road to a brighter future may still be full of bumps and hurdles.
Comments