Pop Mart Q1 2026 Revenue Up 75-80%, Raw Material Costs to Pressure Margins

Pop Mart International Group (ticker: 09992.HK), a collectible toy brand, reported first-quarter 2026 revenue growth of 75–80% year-over-year on May 12, 2024, while flagging cost headwinds that will impact profitability. Chief Financial Officer Yang Jingbing disclosed on May 13 during a business update call that raw material costs for PVC, fabrics, and packaging are expected to rise 3–5 percentage points compared to the same period last year, reducing overall gross margin by approximately 0.5 percentage points.

Cost Pressures and Margin Impact

Yang Jingbing attributed the cost increases to the international macroeconomic environment and volatile shipping markets. Rising international oil prices and ocean freight fuel surcharges have increased Pop Mart’s first-leg sea freight, fuel surcharges, and warehouse costs, with spillover effects on overseas business margins. The company did not disclose Q1 gross margin figures; however, full-year 2025 gross margin improved to 72.1% from 66.8% in 2024, a gain of 5.3 percentage points.

Regional Revenue Performance

Pop Mart’s Q1 2026 unaudited revenue results showed:

• Overall revenue: 75–80% growth YoY
• China: 100–105% growth YoY
• Asia-Pacific (excluding China): 25–30% growth YoY
• Americas: 55–60% growth YoY
• Europe and other regions: 60–65% growth YoY

Within China, offline channels grew 75–80% year-over-year, while online channels surged 150–155%.

Strategic Priorities and IP Development

Chief Operating Officer Si De outlined three operational focus areas for 2026. First, the company will prioritize store quality and operational effectiveness over rapid store expansion in overseas markets. Second, Pop Mart is building a unified global membership system to increase membership penetration and member spending share. Third, the company is integrating global organizational structures and back-office capabilities to ensure consistent brand presentation and operational standards across all global stores within one to two years.

On the LABUBU intellectual property, Si De stated that fluctuations in global traffic and short-term returns are normal, and the company will not over-focus on LABUBU’s near-term performance. “We will operate the IP with a longer-term perspective and angle to unlock its commercial value,” Si De said.

Pop Mart disclosed that LABUBU’s first related film project is in script development, with two key products planned for launch in the second half of 2026. The company also plans World Cup-related marketing collaborations.

Founder’s “Maintenance Mode” Strategy

Founder Wang Ning previously stated in Pop Mart’s 2025 earnings call that 2026 should be a “maintenance year” — a period to service and fine-tune operations after the company’s rapid growth trajectory. “After super-high-speed development, we hope to make some adjustments,” Wang said.

Appliance Business Clarification

In April 2026, Pop Mart launched its first appliance product, THE MONSTERS lifestyle series refrigerator, which drew external attention. Si De clarified that the appliance business is in very early stages with no plans to move into traditional home appliance categories. “We want to combine small appliances with IP and collectible toy culture,” Si De said. The refrigerator product generates approximately 6 million RMB in revenue, representing a negligible share of total company revenue.

Stock Performance

As of the close of May 13, Pop Mart shares fell 1.23% to 160.9 Hong Kong dollars per share.