Pop Mart shares slump as Chinese toymaker warns it may miss 20% sales growth target
Decline in sales growth will be ‘difficult to reverse’ without a new product format or powerful celebrity endorsement, analyst says
Shares of Chinese toymaker Pop Mart International Group slumped after the company’s management said it could miss the full-year 20 per cent sales growth target it had previously set.
Its shares fell as much as 8.9 per cent to HK$140.10 before paring the losses to 4.2 per cent at HK$147.70 as of 10am local time on Friday. The sell-off came after the company reported weaker-than-expected earnings on Thursday night.
Wang Ning, founder and CEO of the Hong Kong-listed firm, sounded a note of caution about the outlook on Pop Mart’s interim-results earnings call.
“We had earlier guided for 20 per cent revenue growth for 2026,” Wang said. “The high base from last year’s outstanding performance has created pressure for this year, which will be more pronounced in the second half.”
The company described 2026 as a year of operational readjustment, he added.
“Driving sales is not the top priority, and corporate governance is showing positive momentum,” Wang said.
Pop Mart posted first-half revenue of 17.17 billion yuan (US$2.5 billion), up 23.8 per cent year on year, while net profit rose 10.14 per cent to 5.04 billion yuan, according to its earnings report filed with the Hong Kong stock exchange.