Pop Mart rallies in Hong Kong on aggressive push into US retail market

Pop Mart extended its rally in Hong Kong on Wednesday after unveiling an accelerated push into the US market, underscoring how overseas expansion is helping the Chinese toymaker offset lingering pressures at home. The maker of Labubu figurines plans to open more than 20 new stores across the United States this year, under a partnership with US mall operator Simon Property Group, which announced the roll-out in mid-January. The outlets will be located in major shopping centres including King of Prussia in Philadelphia, Sawgrass Mills in Florida and The Westchester in New York, marking a step-change in Pop Mart’s overseas ambitions. Shares of Pop Mart climbed as much as 9 per cent to HK$236 in afternoon trading, before ending 7 per cent higher at HK$231.4, extending a rebound fuelled by a HK$350 million (US$45 million) share buy-back last week. The stock has now risen more than 32 per cent from its year-to-date low of about HK$174. The overseas momentum comes after a turbulent period in mainland China, where Pop Mart faced heightened scrutiny over its blind-box sales model. Blind-box sales involve selling sealed products with undisclosed contents, a format that raised regulatory concerns over compulsive spending and gambling-like behaviour, particularly among minors. Prices of its flagship Labubu series also slumped in the secondary market last year, hit by oversupply and fading hype, dragging the company’s shares lower in the second half. Meanwhile, Pop Mart has been stepping up its push abroad, particularly in the Americas. In the first half of 2025, it added a net 19 stores in the region, compared with 12 in China and four in Europe. By the end of June, the company operated 41 outlets across the Americas, according to its interim report in September. That expansion has translated into explosive growth. Revenue from the Americas surged 1,142 per cent year on year to 2.26 billion yuan (US$315 million) in the first six months of last year, far outpacing the 135 per cent growth recorded in China. The strategy also aligns with Beijing’s broader push for mainland companies to seek growth overseas, rather than intensifying competition at home amid deflationary pressures. “With greater emphasis on intellectual property development, Chinese brands can increase recognition and gain a stronger foothold in consumer markets such as pop culture and sportswear,” said Gary Ng Cheuk-yan, a senior economist at Natixis Corporate and Investment Bank. “Pop Mart’s move will not make it easier for others to enter the US market, but it reflects that the consumer sector is relatively less politically sensitive.” Investment banks have taken note of the company’s resilience. Morgan Stanley maintained an overweight rating on the stock with a target price of HK$325, citing an estimated 20 billion yuan in cash that could be used to enhance shareholder returns. Citi also reaffirmed Pop Mart as a top pick, pointing to a global consumer survey suggesting that overseas demand for the company’s non-Labubu intellectual properties may be underestimated.