Shares of Pop Mart, known for its Labubu figures, jumped nearly 12% on Wednesday following the announcement of a mini version of the popular doll set to launch soon.
The CEO, Wang Ning, mentioned during a revenue call that the new Mini Labubu Monsters will be designed to hang up as part of their appeal.
On the Hong Kong Exchange, the stock shot up by 11.9% to $40.75, reaching its highest point since the company’s public debut in 2020.
Previous releases from Pop Mart sold out almost immediately, even causing their website to crash.
Wang, who started the company in 2010, expressed confidence that they are on track to achieve their revenue goal of 20 billion yuan (about $2.78 billion), while also stating that reaching $4.18 billion this year seems quite feasible.
Although most of their revenue comes from China, the company has seen impressive growth in the Americas recently, with a staggering 1,142% increase in revenue compared to last year.
Wang stated, “We remain optimistic about our international market and see significant growth potential ahead.” Currently, Pop Mart operates around 40 stores in the US and has plans for rapid expansion.
The company reported nearly 400% profit growth in the first half of the year, showcasing its strong performance.
Pop Mart’s stock has surged over 200% this year, elevating its market cap beyond $46 billion.
The popularity of Labubu dolls has been partly driven by their “blindboxes,” where customers don’t know the exact version until they open the box. This mystery aspect has led to viral unboxing videos featuring celebrities like Lisa from BLACKPINK, Rihanna, and David Beckham showcasing their new purchases.
Globally, these dolls sell out quickly, leading to resale prices reaching hundreds or even thousands of dollars on platforms like eBay.
However, a rise in imitation products called “Roughfass” has raised concerns. US regulators issued warnings about potential dangers, citing risks associated with quality and safety that could endanger young children.
The demand for Labubu dolls significantly contributed to Pop Mart’s net profit of $636 million, marking a remarkable increase of 396.5% compared to the same timeframe last year, while revenues climbed 204.4% to around $1.93 billion, far exceeding last year’s growth of 62%.
