FILE PHOTO: People look at Labubu dolls at the flagship store of Pop Mart in Shanghai, China June 13, 2025. REUTERS/Go Nakamura/File Photo
FILE PHOTO: A person carries a bag with a Labubu doll attached, outside the Pop Mart's flagship store in Shanghai, China June 13, 2025. REUTERS/Go Nakamura/File Photo
FILE PHOTO: A Labubu toy is placed at a host stand of a restaurant serving dessert in the shape of Labubu monster figurine, in Moscow, Russia June 27, 2025. REUTERS/Evgenia Novozhenina/File Photo
FILE PHOTO: A Labubu toy hangs from a bidder's Hermes bag at an auction by Yongle International Auction in Beijing, China June 10, 2025. REUTERS/Tingshu Wang /File Photo
FILE PHOTO: An attendee wears a Labubu at the Pop Mart booth on the convention floor during the opening day of Comic-Con International in San Diego, California, U.S. July 24, 2025. REUTERS/Mike Blake/File Photo

SHANGHAI (Reuters) -China's Pop Mart, which has taken the world by storm with its ugly-cute Labubu doll, reported a nearly 400% first-half net profit on Tuesday on high demand for the toys and a shift towards higher-margin overseas markets.

Net profit of 396.5% and a 204.4% jump in revenues exceeded numbers flagged in an earnings preview last month forecasting revenue growth of 200% in the first half of 2025 and a recurring net profit increase of at least 350% on the year.

Shares in Pop Mart have risen more than 200% year-to-date, making the Chinese toy company more valuable than traditional industry giants like Barbie-maker Mattel and Hello Kitty parent company Sanrio.

Pop Mart often sells its collectable figurines in so-called "blind boxes" with buyers not knowing the exact design they will receive until they open the packaging.

One of the major drivers of the toothy-grinned Labubu's success has been its popularity with celebrity fans, who include Lisa of K-pop group Blackpink, singer Rihanna and ex-soccer star David Beckham.

Pop Mart is pledging to increase supply of the dolls, which have sold out in stores around the world.

Its CEO Wang Ning, in an interview with Chinese state media last month, said sales of Labubu will surpass 10 million units per day from September this year.

Pop Mart classifies Labubu under its "The Monsters" intellectual property (IP) characters. It said on Tuesday that "The Monsters" raked in 4.81 billion yuan ($669.88 million) in the first half, accounting for 34.7% of total revenue.

Four other IPs earned over 1 billion yuan during the period, including "Molly" and "Crybaby", it added.

The company now has 571 stores - 40 of which it opened in the first half of this year - as well as 2,597 automated robot shops across 18 countries and regions, it added.

($1 = 7.1804 Chinese yuan renminbi)

(Reporting by Casey Hall and Brenda GohEditing by Bernadette Baum and Joe Bavier)