San Francisco Frontiers - Labubu maker Pop Mart's shares fall 23% despite surging earnings

Revenue soared 184.7 percent to 37.1 billion yuan ($5.4 billion) in 2025, while net income surged 308.8 percent to 12.8 billion yuan, according to company earnings results published on the Hong Kong stock exchange on Wednesday.

However, its Hong Kong-listed shares closed 22.5 percent lower despite the profit bounce.

Beijing-based Pop Mart's annual revenue growth in 2025 was still largely reliant on sales of snaggle-toothed Labubus, with the Monsters series of which they are part generating more than one-third of revenue, or 14.2 billion yuan.

This appeared to weigh on investors, who worried about the company's growth prospects once the Labubu hype dies down.

"Pop Mart has more than just Labubu," Chief Executive Officer Wang Ning sought to assure investors in a post-earnings call, according to a Bloomberg report.

The viral "ugly-cute" Labubu dolls have taken the world by storm, adorning the handbags of celebrities such as Blackpink's Lisa and Dua Lipa.

The plushie dolls are released in limited quantities and are typically sold in "blind boxes", meaning buyers don't know the exact model they will receive.

Labubu will also soon come alive on the big screen, with Pop Mart announcing a collaboration with Sony Pictures this month.

The movie, which is still in early development, will feature the fanged monsters in a "live-action and CGI hybrid", Pop Mart said.

The company operates more than 600 stores across some 20 countries.

"We have been reminding our team to stay humble despite our strong performance, and to reflect deeply on the challenges we face," Wang said.

"Looking back, while we acknowledge there are still many issues to address, we have built solid strengths over the past year."

N.Flores--SFF