Pop Mart reports first decline in overseas revenue
Chinese toy maker Pop Mart International reported higher revenue and profit for the first half of 2026, but its international business recorded its first-ever decline, putting pressure on the company’s expansion strategy and investor sentiment.
Group revenue increased by 23.8% to RMB 17.17 billion in the first half of the year, while adjusted net profit rose 9.5% to RMB 5.16 billion. The company’s domestic business remained particularly strong, with revenue in China climbing 47.3% to RMB 12.20 billion.
Overseas revenue fell
Overseas revenue, however, fell 11.1% to RMB 4.97 billion, marking the first decline in the segment. Revenue in the U.S. and the Americas dropped 16.5%, while sales in the Asia-Pacific region declined 9.7%. Europe was the only international region to post growth, with revenue increasing 5.9% to around RMB 505.7 million.
The company was also affected by foreign-exchange losses of RMB 720 million.
Mixed developments
Pop Mart’s product portfolio showed mixed developments. Revenue from its popular “The Monsters” series, which includes the Labubu character, decreased 7.5% to RMB 4.45 billion. At the same time, the “Twinkle Twinkle” line saw revenue surge 580.6% to RMB 2.65 billion, emerging as a key growth driver.
Plush toys also continued to perform strongly, with revenue rising 60% to RMB 9.82 billion. The company’s gross margin nevertheless eased slightly to 69.7% from 70.3% a year earlier.
Chief Executive Wang Ning expressed caution about the outlook for the remainder of the year, saying that the company’s original target of 20% annual growth could be difficult to achieve under current conditions.
To support investor confidence amid pressure on the share price, Pop Mart announced plans to repurchase shares worth between RMB 2 billion and RMB 5 billion over the next six months. Citi analysts have meanwhile lowered their price target for the stock.
Pop Mart currently operates 676 stores and more than 2,800 Robo Shops worldwide, while facing increasing competition and regulatory challenges in overseas markets.
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