Pop Mart’s next act gets harder as Labubu growth cools

Pop Mart's interim 2026 results show a pivot from aggressive expansion to a focus on profitability and operational efficiency. The company's revenue growth slowed to 23.8% year-on-year, a stark contrast to the 184.7% surge in 2025. This deceleration is largely attributed to a significant 11.1% drop in overseas revenue, particularly in the Americas and Asia Pacific, where online sales fell sharply. The company is now emphasizing improved supply chains, online customer acquisition, and local operating efficiency for its international growth, rather than rapid store openings. The shift in Pop Mart's IP portfolio is also notable. While The Monsters (including Labubu) saw a 7.5% revenue decline, Twinkle Twinkle emerged as a new growth driver, with revenue jumping 580.6% to RMB 2.65 billion. The company is also investing in plush products, which accounted for 57.2% of first-half revenue. Pop Mart's plan to repurchase RMB 2-5 billion in shares over the next six months, following substantial buybacks earlier this year, suggests a stronger emphasis on shareholder returns as it navigates this period of adjustment and seeks to diversify its IP reliance beyond single global hits.