An exhibition hall at Pop Mart theme park, Pop Land, in Beijing, June 18, 2025.
Pedro Pardo | Afp | Getty Images
Shares of the Chinese toy maker Pop Mart fell 9% on Thursday, marking the stock’s worst day since April and extending its declines from a peak in late August.
The company behind the popular Labubu dolls, a series of collectible elf-like monster dolls that come in blind packaging, announced Tuesday that its third-quarter revenue more than tripled year over year, with U.S. sales increasing between 1,265% and 1,270%.
And yet, concerns are growing: the enthusiasm could fade.
Data from Chinese resale platform Qiandao shows that some Labubus are being sold at prices close to or below Pop Mart’s official retail prices, a dramatic change after a period of extremely high demand and prices. The Labubu character Luck, released in April, for example, saw its resale price rise to more than 500 yuan, or about $70, at one point. But that amount has since fallen to 108 yuan, or about $15, according to Qiandao.
Since August, Pop Mart’s stock has fallen 30%, but it’s still up 159% this year.
Analysts are divided on how to interpret the economic slowdown.
One food for thought is that falling resale prices could signal a slowing of enthusiasm for Labubu and other collectibles after a summer peak, particularly among younger, non-traditional toy buyers. Another possibility: The decline could reflect Pop Mart’s efforts to increase supply and curb scalping, rather than decrease consumer demand.
Pop Mart reported a 10-fold increase in its supply of plush toys this year and said it now makes about 30 million units each month, the company told Reuters on Tuesday.
Morgan Stanley Analysts noted in a September client note that “prices in the second-hand market do not effectively reflect the true supply and demand situation,” particularly given Pop Mart’s initiatives to limit the influence of resellers.
The popularity of Labubu dolls has been boosted by famous fans including singer Rihanna and former football star David Beckham. However, Labubus isn’t the only Pop Mart product catching the attention of non-traditional toy shoppers.
Analysts at Morgan Stanley noted that emerging characters like Twinkle Twinkle and global expansion opportunities continue to play a key role in Pop Mart’s growth.