Pop Mart’s first quarter revenue surges but tepid fan growth overseas dims outlook
In the first three months, revenue in China alone surged 100 to 105 per cent, while growth was 25 to 30 per cent in Asia-Pacific
Chinese toymaker Pop Mart said its overseas business grew rapidly in the first quarter compared with a year earlier, but warned that “inadequate customer accumulation” led to a noticeable decline in quarter-on-quarter sales outside China, raising concerns about sustainable growth in future.
The Hong Kong-listed company, developer of the hit Labubu character, said first-quarter revenue surged 75 to 80 per cent year on year, but its core challenge was to expand its fan base offshore.
“We hope to improve our overseas retail system over the next one to two years, build a larger fan base, and further consolidate our IP [intellectual property] culture,” Sid Si, chief operating officer of Pop Mart, said in an online briefing on Wednesday.
The company said it plans to open flagship stores in Milan, London, New York and Paris, with the 200-square-metre model as its main format, while its mainland China business had transitioned from Labubu-driven explosive growth to steady expansion.
In the first three months, year-on-year revenue in China alone surged 100 to 105 per cent, while growth was 25 to 30 per cent in Asia-Pacific, 55 to 60 per cent in the Americas, and 60 to 65 per cent in Europe and other regions. Offline sales grew 75 to 80 per cent year on year, while online revenue surged 150 to 155 per cent.
The company did not announce net profit or revenue figures for the quarter, nor did it provide quarter-on-quarter growth data.