POP Mart International Group Ltd posted a 47.3 percent revenue surge in its home market during the first half, yet its leadership now warns the blistering pace may not hold.
The Chinese collectible toy maker generated 12.2 billion yuan ($1.82 billion) in mainland revenue through June, adding only 10 net new stores for a total of 455 outlets. Sales increasingly flow from existing locations and a loyalty base that grew to 82.4 million registered members from 72.6 million at year-end. Members drove 92.9 percent of purchases, with a 51.6 percent repurchase rate.
Companywide revenue climbed 23.8 percent to 17.17 billion yuan. Adjusted net profit hit 5.16 billion yuan, gross margin reached 69.7 percent, and adjusted net margin touched 30 percent. Those figures signal strong profitability even as growth cools from last year’s record-setting run.
Investors reacted swiftly, sending shares down as much as 8 percent on Friday following the earnings release. Management struck a deliberately cautious tone.
Founder and CEO Wang Ning acknowledged the company might miss its stated goal of 20 percent annual revenue growth. The reason? Labubu, Pop Mart’s blockbuster collectible character, exploded into a worldwide craze during the second half of last year, creating an extraordinarily difficult comparison.
“Last year’s third quarter set an exceptionally high base, so the pressure in the second half will be greater than in the first,” Wang told analysts. He promised restraint, saying the company would not chase aggressive strategies purely for expansion.
Wang instead pointed to operational fixes after last year’s demand spike exposed supply chain gaps, inventory issues, and store operations weaknesses. He described a period when sold-out products, long queues, and panic buying became routine, adding that such conditions “shouldn’t be the norm.”
A share buyback program worth 2 billion to 5 billion yuan over six months aims to reassure shareholders.
International operations show a split picture. Asia-Pacific revenue fell 9.7 percent to 2.58 billion yuan, while the Americas dropped 16.5 percent to 1.89 billion yuan. Europe and other markets bucked the trend with 5.9 percent growth to 505.7 million yuan. Pop Mart now runs 676 stores and 2,827 vending machines across more than 20 countries, employing over 12,000 people worldwide.
