US EditionPop Mart Shares Tumble as Renewed Labubu Demand Concerns Weigh
Pop Mart shares dropped 44%, losing over $25 billion in value as secondary-market Labubu toy prices fell below retail, raising concerns over brand demand and holiday sales.
- On Tuesday Pop Mart International Group Ltd shares slid the most in three weeks after media reports flagged waning reseller demand for its Labubu collectible dolls amid broader consumer stock pressure.
- Amid softening prices, Qiandao shows some mini Labubu full sets drop below retail, while weaker overseas holiday-season sales raise doubts about Pop Mart's demand.
- Pop Mart remains up more than double this year and valued about four times larger than Sanrio Co., amid softening demand it bets on Crybaby line, which held a Shanghai exhibit this month.
- That slump, which started in August, has sent shares tumbling by some 44% and wiped out more than $25 billion in market value, and some investors may be rotating out China’s 'new consumption' stocks, Morningstar Inc. analyst Jeff Zhang said.
- Amid softening demand Pop Mart is trying to replicate Labubu’s success with Crybaby, Twinkle Twinkle and Hirono, while resale-price falls and weaker overseas holiday sales raise fresh growth questions.
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Earlier this summer, we reported that the net profit of Pop Mart, the Chinese company that makes Labubuk, which caused the craze, had increased by nearly 400 percent. By the end of the year, the momentum had faded dramatically, with the company's shares falling sharply in recent weeks as more and more reports emerged of a sharp decline in reseller demand, Bloomberg reported. The Hong Kong-listed company's shares fell 6.2 percent on Tuesday after…
Pop Mart's sales during the holiday season were weaker than expected.
Concerns about reduced demand for Labubu dolls are causing the company Pop Mart's share price to fall sharply.
Pop Mart shares have fallen sharply as the market shows increasing signs that previously huge demand for the trendy figures is weakening. Labubu figures have suffered a significant drop ... ...
The Chinese toy maker was one of the worst performers in the Asia-Pacific region's leading indices.
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