Pop Mart Shares Decline Following Sharp Third-Quarter Revenue Drop
Pop Mart (9992-HK) reported a significant contraction in third-quarter revenue, with year-on-year declines ranging between 45% and 50%. The slump was driven by heavy losses across all major geographic segments, most notably in the Americas where sales plummeted by 70% to 75%, and the Asia-Pacific region which saw drops of 65% to 70%. The results have raised concerns regarding the sustainability of the brand's growth momentum following the popularity of its Labubu line. In response to the weakening overseas performance and subsequent pressure on profitability, Jefferies has lowered earnings estimates for 2027 and 2028 by 9% to 12%. While the company is attempting to diversify its IP portfolio and expand flagship stores in cities like New York and Paris, fourth-quarter revenue is still projected to remain significantly lower than previous year levels.
Tickers: $HPPD
Topics: analyst downgrade earnings report overseas sales revenue decline
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