Pop Mart to Launch Mini Labubu as It Triples 2025 Revenue Forecast
Pop Mart International Group Ltd. is set to release a miniature version of its blockbuster Labubu character this week, capitalizing on the IP’s explosive growth that has prompted the company to triple its annual revenue forecast and sent its stock to a record high.
The toymaker now projects it can “easily” reach 30 billion yuan in revenue in 2025, a dramatic increase from its initial 200 billion yuan target, CEO Wang Ning said during an earnings call on August 20. The company also anticipates a full-year net profit margin of around 35%. The bullish forecast follows a stellar first half, where surging international sales and the immense popularity of its Labubu franchise propelled net profit by 400%.
News of the upgraded guidance and the upcoming "Mini Labubu" launch caused Pop Mart’s shares to surge nearly 6% in intraday trading, hitting an all-time high of HK$298.
The announcement of the new product, described by Wang as a potential “super blockbuster” that can be “hung on a mobile phone,” signals Pop Mart's strategy to further leverage its most valuable asset. The company's plush products category, dominated by Labubu, has become its largest, with revenue soaring 1276.2% in the first half of the year.
Labubu’s Rise to a "World-Class IP"
The franchise THE MONSTERS, with Labubu as its core character, has become the main engine of Pop Mart's growth, accounting for 4.81 billion yuan, or 34.7% of total revenue in the first half. Chairman and CEO Wang Ning declared Labubu a “world-class IP,” comparing its long-term commercial potential to enduring icons like Mickey Mouse and Hello Kitty, which retain high commercial value despite lower public discussion. Wang noted the company has been "relatively restrained" with new Labubu releases in 2025 to avoid over-saturating demand, suggesting significant untapped value. He also dismissed concerns that relying on a single IP is unhealthy, stating that developing more original IPs proves the company is a “relatively healthy platform-based IP company.”
Overseas Expansion Fuels Growth
International markets have emerged as a primary growth driver, with overseas sales increasing by 440% year-on-year in the first half and now contributing approximately 50% of the company's total revenue. The performance of a single overseas store is, on average, four times more effective than a domestic one. "The growth in overseas markets is faster than we imagined," Wang said, expressing strong confidence in markets like Germany and Mexico, which he described as “just beginning.” The company plans to maintain an aggressive expansion pace, opening an average of three new stores per week in the second half of 2025 while exploring new markets in the Middle East, Central Europe, and Central and South America.
Production Ramps Up to Meet Demand
The rapid success has created significant operational hurdles. Pop Mart's Chief Operating Officer acknowledged that the company faces a "significant challenge" with production capacity in the second half of the year, even as Labubu sales constitute about 35% of the total revenue. To meet the overwhelming demand, the company has drastically scaled up its manufacturing capabilities. According to Vice President Yuan Junjie, the monthly production capacity for plush products is now more than ten times higher than in the same period last year. The company is relying on lean production methods and automation as key strategies to further enhance output.