Key Takeaways:
Pop Mart reported first-half revenue of 17.17 billion yuan, up 23.8 percent, and unveiled a share buyback of up to 5 billion yuan.
"The high base from last year's outstanding performance has created pressure for this year, which will be more pronounced in the second half," Wang Ning, founder and chief executive of Pop Mart, said on the interim-results earnings call.
Adjusted net profit reached 5.16 billion yuan with a 30 percent margin, while gross margin came in at 69.7 percent. Net profit rose 10.14 percent to 5.04 billion yuan. The buyback, between 2 billion and 5 billion yuan over the next six months, marks the first time the Hong Kong-listed toymaker has disclosed such a plan on an earnings call.
Wang earlier guided for 20 percent revenue growth in 2026 but said the high base from last year's Labubu-fueled performance would weigh on the second half, calling 2026 a year of operational readjustment. "Driving sales is not the top priority," he said.
Six top IPs — The MONSTERS, TWINKLE TWINKLE, CRYBABY, DIMOO, SKULLPANDA and HIRONO — each generated more than 1 billion yuan in revenue. The plush category delivered 9.82 billion yuan, up 60 percent year on year, with Nyota, Zsiga and Peach Riot launching their first plush offerings.
The offline network expanded to 676 physical stores and 2,827 roboshops globally, a net increase of 46 stores and 190 roboshops from the end of 2025. POP LAND, the company's theme park, saw visitor traffic rise more than 100 percent quarter on quarter after adding areas themed around LABUBU and DIMOO, while POP BAKERY opened its first domestic store in Aranya and a maiden outlet on Singapore's Sentosa Island.
LABUBU's participation in the FIFA World Cup, including co-branded merchandise and appearances at the opening ceremony and final, lifted its global profile. The 10th-anniversary touring exhibition "MONSTERS BY MONSTERS: Now and Then" has landed in Paris, Tokyo and New York.
The buyback shows management's confidence in the company's financial strength as demand normalizes after last year's surge. Investors will watch whether the 20 percent full-year growth target holds through the second half, when the high base is expected to bite hardest.
This article is for informational purposes only and does not constitute investment advice.
