Labubu maker Pop Mart shares fall as key ex-China sales data drop, Citi cuts price target

Shares of Pop Mart fell over 4% in Hong Kong on Friday after the Labubu maker reported first-half results that showed declining sales in Asia-Pacific and the Americas.

For the period ended in June 30, the toy maker reported a 23.8% year-over-year rise in first-half revenue to 17.17 billion yuan ($2.55 billion). But the growth was unequal: in Asia Pacific ex-China it fell 9.7%, and dropped 16.5% in the Americas. Revenue in China, meanwhile, jumped 47.3%.

Citi said the results came in below expectations, citing pressure in overseas markets, where sales declined 11% year over year. The company has faced challenges globally ranging from inventory management, supply chains to warehousing and logistics and store operation, according to Citi.

The bank now expects Pop Mart's group revenue to decline 8% year-over-year in 2026 and lowered its price target to HK$198. Citi said management now sees its initial 20% revenue growth target for 2026 as difficult to achieve, given more challenges than expected and competitive pressure.