Pop Mart International Group said its third-quarter revenue fell 45% to 50% from a year earlier, as sales of its Labubu dolls weakened in every major market and its business outside China shrank by more than half.

The Hong Kong-listed toy maker gave the figures, which TokenPost described as unaudited, only as percentage ranges and did not disclose amounts in yuan, according to TokenPost and The Standard. The South China Morning Post also reported the decline, saying overseas operations and online channels bore the brunt of the slowdown.

The update is the clearest sign yet that the Labubu boom, which powered Pop Mart's expansion abroad, is fading. It also raises the question of how quickly the company can find characters that sell as well outside its home market.

Overseas Markets Fall Furthest

Every region declined, and the drops were steepest abroad. Revenue in the Americas fell 70% to 75%, the worst result of any region, according to the reports. Asia-Pacific fell 65% to 70%, and Europe and other regions fell 50% to 55%.

China held up better, with revenue down 25% to 30%. The company's channel breakdown, which covers China only, showed a sharp split. Online sales fell 45% to 50%, while sales through physical stores slipped a more modest 5% to 10%.

Chief Operating Officer Si De described the Chinese business as fairly stable and healthy over the full year and said he still expects it to grow from a year earlier, The Standard reported. He added that Pop Mart will try to capture sales in the traditional peak season while preparing for next year.

Cracks Appeared in the First Half

The third-quarter slide follows warning signs in Pop Mart's interim results. In the six months to June, group revenue still rose 23.8% to 17.17 billion yuan, and profit attributable to shareholders increased 10.1% to 5.04 billion yuan, Inside Retail Asia reported in August.

But growth had become lopsided. Revenue from Greater China, which covers the mainland, Hong Kong, Macau and Taiwan, jumped 47.3% to 12.20 billion yuan, lifting its share of the total to 71%. Overseas revenue fell 11.1% to 4.97 billion yuan, the first decline since the company began reporting that business as a separate segment.

Sales of The Monsters, the series that includes Labubu, fell 7.5% in the half to 4.45 billion yuan, the first decline on record for the line. Its share of group revenue dropped to 26.0% from 34.7%.

Other characters filled part of the gap. Sales of Twinkle Twinkle rose 580.6% to 2.65 billion yuan, making it the company's second-largest property, and plush toys overtook figurines as the biggest product category, Inside Retail Asia reported.

Online selling was already the weak point overseas. In the first half, overseas online sales fell 45.6% in the Americas, 39.8% in Asia-Pacific and 59% in Europe, even as store sales grew in every overseas region. Pop Mart roughly doubled its store count in the Americas, to 86 from 41 a year earlier, yet revenue in the region still fell.

Chief Executive Wang Ning acknowledged in August that the company would struggle to reach its 20% growth target and called 2026 a year of internal adjustment, according to Inside Retail Asia. Si De said at the time that many new international customers knew little about Pop Mart's characters other than Labubu.

Rivals and the Peak Season

The slowdown comes as competition builds. Miniso's Top Toy unit has refiled for a Hong Kong listing, and Frost & Sullivan expects China's market for collectible toys to reach 110 billion yuan this year, Inside Retail Asia reported.

For investors, two questions stand out. The first is whether Pop Mart's store business in China, which has proved far more resilient than its online sales, can hold up through the year-end holidays. The second is whether newer characters such as Twinkle Twinkle can fill the overseas store network that Labubu helped build.

The fourth quarter, which the company treats as its peak selling season, will be the first test of the rebound its management is promising. Because the update gave only percentage ranges, investors will have to wait for full-year results to see how far the quarter's decline cuts into annual revenue.