Mattel Inc.‘s (NASDAQ:MAT) Barbie and Hot Wheels brace for tough competition as Pop Mart‘s Labubu toy brand, is on track to become a four billion-dollar business by the end of the year.
Pop Mart Net Profit Surges 396% on Labubu Craze
Pop Mart’s financial report, released on Aug. 19, revealed a 396% surge in net profit and a 204% increase in revenue, for the first six months of 2025, largely due to the success of its Labubu line. These sales have contributed a staggering 4.81 billion yuan ($670 million) to the company’s earnings this year, accounting for over 30% of its total revenue, reported Reuters.
Pop Mart, which operates around 40 stores in the United States, has plans for “relatively rapid store openings” in the coming years. The company aims to open 10 more U.S. stores by the end of 2025. Pop Mart’s stock has also seen a 200% rise since the beginning of the year.
The company is on pace to reach its 2025 revenue goal of 20 billion yuan ($2.78 billion), Chief Executive, Wang Ning said on Wednesday, adding that “30 billion yuan ($4.18 billion) this year should also be quite easy.”
SEE ALSO: Ukraine’s $150 Billion Commitment To Buy US Weapons Could Hand RTX, Lockheed And Northrop Billions
Labubu—The Viral Social Media Doll
The Labubu toys, inspired by Nordic folklore elves and designed by Kasing Lung, gained popularity in 2015 through an illustrated book series titled “The Monsters”. The dolls’ popularity skyrocketed in China post the COVID-19 pandemic in 2022.
After being showcased by celebrities like Rihanna, David Beckham and Blackpink’s Lisa, the K-pop icon, these dolls became an overnight social media sensation. Previously best known as a handbag charm, Pop Mart announced it will launch a mini version of Labubu this week that can be clipped onto phones.
Labubu Gains Ground While Barbie, Hot Wheels Face Setbacks
The success of Labubu is particularly notable in light of the challenges faced by other toy companies. Mattel, a key competitor of Pop Mart, experienced a decline in Barbie sales in Q2 and slashed its guidance. This decline was attributed to various factors, including the impact of tariffs on Chinese imports. Global gross billings from doll sales totaled $335 million, while toy cars, including Hot Wheels, brought in $407 million, marking a 10% increase.
Overall, the U.S. toy industry has been grappling with challenges due to increased tariffs on Chinese imports, leading to an unprecedented surge in toy prices in the U.S. Prices for games and playground equipment jumped a record 2.2% between April and May. With over 75% of U.S. toy sales relying on imports from China, Census Bureau data shows the industry is particularly exposed to the trade war launched under President Donald Trump.
READ MORE:
Image via Shutterstock
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
