Chinese toy maker Pop Mart has experienced a significant decline in its United States sales as the company grapples with the challenge of broadening its product range beyond the immensely popular Labubu plushie. The monster plushie, known for its distinctive blend of creepiness and cuteness, has become a viral fashion trend on social media platforms, with enthusiasts attaching key-chain-sized versions to their bags.
Revenue and Sales Decline
Labubus propelled Pop Mart to generate over 37 billion yuan (approximately $5.4 billion) in revenue in 2025, nearly three times the amount recorded the previous year, according to Reuters. However, data from Bloomberg Second Measure, which tracks credit and debit card transactions, reveals that U.S. sales in March were 45 percent lower compared to the same period in 2025. It is important to note that this data does not include transactions made through alternative payment methods such as cash.
Melinda Hu, a consumer analyst at Sanford C. Bernstein, explained in a Bloomberg article that while Labubus have captured the affection of many American consumers, Pop Mart has encountered difficulties in cultivating a dedicated fan base in the U.S. for its other plushie characters. The Independent has reached out to Pop Mart for comment.
Performance of Other Characters
Despite the U.S. sales slump, Pop Mart has seen success with other characters in other markets. Sales from the Skullpanda character more than doubled to 3.54 billion yuan (around $512 million) last year, according to CNBC. The Twinkle Twinkle plushie generated 2.06 billion yuan (about $300 million) for the company.
While Pop Mart's annual revenue surged by 185 percent year-over-year, its shares plummeted more than 22 percent following the release of its annual earnings last month, as reported by CNBC. This decline reflects concerns among investors regarding the sustainability of the company's growth, which has been heavily reliant on the Labubu trend. During an earnings call, Pop Mart CEO Wang Ning asserted, “Pop Mart has more than just Labubu,” as quoted by CNBC. However, the company's stock has yet to recover from the late March downturn, currently trading at around HK$155 (approximately $20).
