Pop Mart shares plunge as Labubu craze cools

HONG KONG - Pop Mart International Group shares plunged on Oct 23, reflecting renewed concerns about the toymaker’s long-term sales outlook despite a strong third-quarter performance.

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Labubu figurines on display at an exhibition in Shanghai, China, on Oct 15. Pop Mart's shares have lost steam in recent months and are down about 30 per cent since a late-August peak, hurt by profit-taking and concerns that frenzied demand for its products is unlikely to be sustained.

(PHOTO: BLOOMBERG)

The Hong Kong-listed stock dropped 12.3 per cent as at 1.10pm. The counter eventually ended 9.4 per cent lower on Oct 23.

The decline reversed a 2.4 per cent gain on Oct 22, after the manufacturer of popular Labubu dolls reported annual revenue growth of as much as 250 per cent in the three months ended September.