Labubu mania appears to be ebbing as quickly as it surged, reports Bloomberg, driving a roughly 40% drop for Pop Mart International since its August peak.
A disappointing US Black Friday and cooling resale demand have revived comparisons to the 1990s’ Beanie Babies bust, challenging the notion that Pop Mart could become China’s answer to Walt Disney or Hello Kitty owner Sanrio.
Pop Mart’s North America revenue growth slowed to 424% in the current quarter to December 6—more than halving from the three months to September—according to YipitData, a New York-based firm that gathers and analyzes alternative data. Bearish wagers against its stock have tripled since November to their highest since August 2023, S&P Global data show.