Labubu drives Pop Mart growth, but U.S. sales slump raises doubts

Labubu is still carrying Pop Mart, but the latest U.S. slump suggests the plushie may be doing more work than the brand can afford. Pop Mart’s U.S. sales fell 45% year on year in March, even after gains of 41% in February and 130% in January, a sharp reversal for a character that has fueled lines, blind-box hunts and resale chatter across the market.

The drop matters because it points to where collectors could feel the pressure next. Bloomberg Second Measure, which tracks credit and debit card spending but not cash, gift cards or many third-party retail sales, showed the slowdown in a market where Pop Mart has been trying to turn Labubu into a lasting American phenomenon. The company opened its first U.S. permanent store at American Dream in New Jersey and later expanded into Los Angeles, Bellevue and Glendale, but the numbers suggest that broader U.S. demand has not yet matched the viral buzz.

Pop Mart’s own 2025 results showed how dependent the business remained on one breakout IP. Revenue reached 37.1 billion yuan, or about $5.4 billion, up 185% year on year, while net income climbed 309% to 12.8 billion yuan. The Monsters, the family that includes Labubu, generated 14.16 billion yuan and made up 38% of annual revenue. Plush products became Pop Mart’s largest category, bringing in 18.71 billion yuan, up 560.6%.

That concentration is exactly what has investors and collectors watching closely. Pop Mart shares fell about 23% after the earnings release, as market concerns over the durability of Labubu-driven growth outweighed the blockbuster headline numbers. Morningstar analyst Jeff Zhang said the material slowdown in the fourth quarter amplified investor concern about the staying power of Pop Mart’s top IPs. Consumer analyst Melinda Hu of Sanford C. Bernstein said the company has struggled to build a deep U.S. fan base beyond the flagship plushie.

For collectors, the practical question is whether softer U.S. demand leads to more aggressive Labubu drops, tighter inventory, or a shift in retailer behavior. Pop Mart has already shown it can broaden the lineup, with Skullpanda at 3.54 billion yuan, Crybaby at 2.93 billion yuan, Dimoo at 2.78 billion yuan, Twinkle Twinkle at 2.06 billion yuan and Hirono at 1.74 billion yuan in 2025. Six major IPs topped 2 billion yuan and 17 crossed 100 million yuan, but Labubu still dominates the conversation. Kasing Lung created the character, Pop Mart locked in an exclusive license in 2019, and celebrity sightings from Lisa, Rihanna and David Beckham helped turn it into a global chase. The next test is whether that chase can keep extending beyond one face.