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The makers of Labubu dolls – popular with celebrities including Rihanna, David Beckham and Paris Hilton – reported a near 400% increase in profits in the first half of this year after demand for the ugly-cute toys soared.

The dolls’ makers, Pop Mart, has released its half-year results as shares in the company have risen more than 230% since the beginning of 2025 – reportedly making the Chinese company more valuable than Barbie-maker Mattel, Hello Kitty parent company Sanrio and Transformers makers Hasbro combined.

The Chinese toy company’s sales tripled to 13.9bn yuan (£1.4bn), while net profit soared almost 400% to 4.6bn yuan (£474m) during the first six months of the year, according to the Financial Times.

Around 40% of the sales are said to have come from outside China.

Labubu, a toothy-grinned member of “The Monsters” series of toys designed by illustrator Kasing Lung, has become a favourite of celebrities including David Beckham, Rihanna and Paris Hilton.

They have also proved difficult to get hold of for consumers after selling out at various places across the world.

Pop Mart boss Wang Ning said on Wednesday that his toy company was on track to meet its targeted revenue goal of 20bn yuan (£2.06bn) in 2025, and that “30 billion (£3.10bn) this year should also be quite easy”.

The 38-year-old chief executive’s net worth has skyrocketed since 2024, according to Forbes – from $1.8bn (£1.3bn) to $26.3bn (£19.5bn). He was named China’s 10th richest person in June.

Read more: How did the toys get so popular?

And his company is hoping to grow further, with executives saying on Wednesday that expansion in emerging markets in the Middle East, Central Europe and Central and South America was being explored.

“I think for overseas markets we’re still very positive, and we also believe there’s still very broad space for growth,” Mr Wang said, adding that sales from North America and Asia Pacific this year would together equal China sales in 2024.

David Beckham says his daughter got him a Labubu. Pic: Instagram/@davidbeckham
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David Beckham says his daughter got him a Labubu. Pic: Instagram/@davidbeckham

In the United States, where Pop Mart currently has about 40 stores, Mr Wang said the company will begin a phase of “relatively rapid store openings” over the next year or two, with 10 more US shops expected to open by the end of this year.

The company has stores in Manchester and London in the UK – as well as having pop-ups in Harrods and Hamleys.

The toys can also be bought online and in vending machines called “Robo Shops” in other parts of the UK.

A Labubu doll on display in Moscow. Pic: Reuters
Image:
A Labubu doll on display in Moscow. Pic: Reuters

Pop Mart’s primary business is producing and selling collectible toys, many of them developed with artists and sold in “blind boxes”.

The packages, which tend to cost around £14 in the UK, mean consumers don’t know exactly which iteration of the toy is inside.

This has helped drive repeat purchases, especially from collectors who want to own complete sets of each range of toys.

A collector reportedly paid 1.2m yuan (£124,000) for a human-sized limited edition Labubu at an auction in Beijing in June.

Until now they have been popular as a charm that can be fastened to handbags, Pop Mart says it will this week launch a mini version of Labubu that can be attached to phones.

Read more from Sky News:
Choke warning over fake Labubus
Surprise rise in inflation to highest in a year
Energy bills expected to rise from October

Monster profits

Pop Mart said on Tuesday “The Monsters” brought in 4.81bn yuan (£496m) in the first half of this year – accounting for 34.7% of total revenue.

Four other Pop Mart toy series’ earned more than 1bn yuan (£1m) during the period, including “Molly” and “Crybaby”, the company said.

“We expect more restocking of existing series and launch of new editions to drive earnings expansion in the second half.
That said, shares likely remain overpriced as investors are overlooking the high business risk in the long run, in our
view,” said Jeff Zhang, an analyst at US financial services firm Morningstar.

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Labubu thieves steal $30k of merch

Pop Mart was reported to have a market capital – a way of measuring a company’s total value – of around £25bn earlier this year.

The figure was more than the combined value of toy-making giants Sanrio (£7.5bn), Hasbro (£6.4bn), and Mattel (£4bn), according to the markets news site Sherwood News.

Next in Pop Mart’s sights is a Disney-esque empire with executives saying the firm is optimistic about opportunities for
Pop Mart characters to star in animated films and theme park attractions, though these are not expected to contribute a large amount of direct revenue in the short term.

Look out for fake Labubus

Keep an eye out for fake Labubu dolls. Pic: Hull City Council
Image:
Keep an eye out for fake Labubu dolls. Pic: Hull City Council

The surge in demand for Labubus led UK council bosses to warn people about the dangers of buying fake versions of the dolls earlier this year.

Trading Standards warned that without proper safety checks, the counterfeit toys may contain choking hazards, toxic materials, or faulty components that put children at serious risk.

The organisation has seized thousands of unsafe counterfeit Labubu dolls in recent weeks – with over 2,000 confiscated from 13 retailers in North Tyneside in just one month, the Chartered Trading Standards Institute (CTSI) said.

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Israel maintains pressure on Gaza City as ‘first stages of attack begin’

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Israel maintains pressure on Gaza City as 'first stages of attack begin'

Gaza City residents say Israel carried out intense overnight bombardments as it prepares a controversial offensive to take control of the area.

Sixty-thousand reservists are being called up after Benjamin Netanyahu‘s security cabinet approved the plan earlier this month.

UN chief Antonio Guterres has warned of more “death and destruction” if Israel tries to seize the city, while France’s Emmanuel Macron said it would be a “disaster” that would lead to “permanent war”.

Live – UN warns of ‘forcible transfer’ as forces advance on Gaza City

Hundreds of thousands of people could end up being forcibly displaced – a potential war crime, according to the UN’s human rights office.

Gaza’s health ministry said at least 70 people had been killed in Israeli attacks in the past 24 hours, including eight people in a house in the Sabra suburb of Gaza City.

Israel currently controls about 75% of the Gaza Strip, but Prime Minister Netanyahu has said Israel must take Gaza City to “finish the job” and defeat Hamas.

More on Gaza

Mr Netanyahu and his ministers are due to meet on Thursday to discuss the plans, according to Israeli media.

Military spokesperson Effie Defrin said earlier that “preliminary operations and the first stages of the attack” had begun – with troops operating on the outskirts of Gaza City.

Israel has said it will order evacuation notices before troops move in but satellite images show thousands of people have already left.

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Aftermath of fresh Israeli strikes on Gaza

Residents said shelling has intensified in the Sabra and Tuffah neighbourhoods and that those fleeing have gone to coastal shelters or to central and southern parts of the Strip.

The decision to stay or leave is an agonising choice for many.

“We are facing a bitter-bitter situation, to die at home or leave and die somewhere else, as long as this war continues, survival is uncertain,” said father of seven Rabah Abu Elias.

“In the news, they speak about a possible truce, on the ground, we only hear explosions and see deaths. To leave Gaza City or not isn’t an easy decision to make,”

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Sky’s Adam Parsons explains what is in the new Israel-Hamas ceasefire deal.

Most of the Israeli reservists being summoned are not expected to be in a frontline combat role and the call-up is set to take a while.

The window could give mediators more time to convince Israel to accept a temporary ceasefire.

Hamas has already agreed to the proposal – envisaging 10 living hostages and 18 bodies being released in return for a 60-day truce and the freedom of about 200 Palestinian prisoners.

Israel hasn’t officially responded, but insists it wants all 50 remaining hostages released at once. Only 20 of them are still believed to be alive.

The war started nearly two years ago when a Hamas terror attack killed about 1,200 people and kidnapped around 250.

Read more:
Tents abandoned as Palestinians flee Israeli advance

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What would a two-state solution look like?

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More than 62,000 Palestinians have been killed in the war, according to Gaza’s health ministry.

The figure doesn’t break down how many were Hamas members, but it says women and children make up more than half.

Two more people also died of starvation and malnutrition in the past 24 hours, the ministry said on Thursday, taking the total to 271, including 112 children.

COGAT, the body controlling aid into Gaza, said 250 aid trucks entered on Wednesday, with 154 pallets air-dropped.

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Police in Kenya begin exhuming shallow graves of suspected cult victims

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Police in Kenya begin exhuming shallow graves of suspected cult victims

Police, pathologists and grave diggers have started the exhumation of 27 shallow graves in Kenya’s Kilifi County.

The remains are believed to be of followers of a deadly cult in Chakama Ranch, a part of the Shakahola Forest.

In 2023, more than 400 mass graves were discovered in the same forest, all members of controversial preacher Paul Mackenzie’s church. They were encouraged to starve themselves to death to get into heaven.

It remains one of the world’s worst cult-related tragedies. Mackenzie is still in jail and faces numerous charges of terrorism, child torture and murder.

Six bodies were exhumed in Chakama Ranch, a part of the Shakahola Forest, today
Image:
Six bodies were exhumed in Chakama Ranch, a part of the Shakahola Forest, today

The remote forest has again been turned into a crime scene.

Morticians were seen carrying out body bag after body bag, some containing the remains of children believed to have been starved to death.

State pathologist Dr Richard Njoroge said this is just the beginning, as investigators expect to find many more bodies: “Today we managed to exhume six.

“Of the six graves, we found five bodies and then also around that area we found ten different scattered body parts, scattered in different places on the surface.”

Eleven suspects have already been arrested in connection with these deaths and will appear in court on Friday.

Police are investigating links to Mackenzie and members of his Good News International Church.

At the exhumation today, pathologists said they were still working to identify the bodies of those exhumed from Mackenzie’s cult.

“We had 453 at the closure of that exercise, I think, we released around 33 or 34 last time. So, from there are 419 remaining,” Dr Njoroge explained.

Read more from Sky News:
Captured ISIS fighters speaks from death row
Israel begins first stages of takeover operation

Police have encouraged families in the area with missing loved ones to come forward and provide their DNA samples, as efforts to identify the dead continue.

Kenya is grappling with a rise in religious extremism and many churches operating informally.

Parliament passed several preliminary bills aimed at regulating religious organisations last year, but implementation has stalled after resistance from church leaders.

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‘I don’t regret anything,’ smiling ISIS militant on death row tells Sky News

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'I don't regret anything,' smiling ISIS militant on death row tells Sky News

Blindfolded and under armed guard, a captured ISIS fighter is brought before us.

When the blindfold is removed, he doesn’t look surprised to see a camera crew and several counterterrorism officers, one of whom interrogated him when he was first caught.

The 24-year-old militant is on death row in Somalia awaiting execution by firing squad, having been accused of being an ISIS commander, as well as a sniper and a member of a two-man bomb squad.

We’ve been given extremely rare access to speak to him and another ISIS recruit in a secure location in Puntland, the semi-autonomous region of northern Somalia where the terror group has been seizing territory and ruling over terrified communities.

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Watch the documentary – Hunting for ISIS: A warning from Africa

US and Somali commanders say ISIS is running its global headquarters in Puntland’s caves, financing its activities worldwide.

Muthar Hamid Qaayid is from Yemen and came to Somalia via a sea route where we’ve witnessed how challenging it is to halt the flow of militant travellers.

He insists he wasn’t an active participant in the two-man bomb squad – and seems entirely unbothered about the situation he now finds himself in.

“I didn’t press the button,” he says. “I just looked. The other man made the bomb and set it off. I didn’t come here to kill Muslims.”

His partner blew himself up as he was planting the bomb in Bosaso city centre and realised he had been discovered.

Officers believe he detonated it prematurely.

The man in front of us was injured, and we are told he had incriminating bomb-making equipment with him.

I ask him if he has regrets about his involvement and joining the militant group.

“I don’t regret anything,” he says, smiling. “Even if you take me out of the room now and execute me, I don’t regret anything.” Again, another smile.

“If they shoot me or hang me, I don’t mind. In the end, I don’t care.”

Tellingly, he says his family does not like ISIS. “If they found me here, they’d be upset,” he says.

Despite persistent questions, he doesn’t shift much. “I’m not thinking,” he insists. “There’s nothing. I’m just waiting for death.”

The ISIS militant speaks to Sky's Alex Crawford
Image:
The ISIS militant speaks to Sky’s Alex Crawford

I ask if he’d heard of people being killed by the bombs he’s accused of planting.

“Yes, but they don’t kill all people,” he insists.

But what about killing anyone, I suggest, slightly puzzled.

“They don’t kill everyone,” he continues. There’s a pause. “Only infidels”.

Infidels is a term many recruits use to describe those who simply don’t agree with their strict interpretation of Sharia – that can include Muslims as well as other religions.

Officials show us multiple foreign passports recovered from ISIS cave hideouts in Puntland and from those they’ve captured or killed.

Passports seized from ISIS hideouts and fighters
Image:
Passports seized from ISIS hideouts and fighters

There are passports for whole families from South Africa, including children, as well as ones from Germany, Saudi Arabia, Venezuela, and Bahrain.

There are also handfuls of IDs which show European faces.

Since a Puntland army offensive was launched last December, just five of the 600 ISIS fighters killed have been Somalis, says Mohamed Abdirahman Dhabancad, Puntland’s political affairs representative.

‘The main target was to rule the world’

The second prisoner brought before us is from Morocco and is much more talkative.

Usman Bukukar Bin Fuad insists he was duped by ISIS and says he only travelled to Somalia because he’d heard he could make money.

Usman Bukukar Bin Fuad claims he only dug caves for ISIS
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Usman Bukukar Bin Fuad claims he only dug caves for ISIS

“Instead, I ended up digging caves,” he says. “It was difficult to escape but when they told me to put on a suicide vest to kill Puntland forces, I said this is not what you told me I would be doing – and I escaped.”

He says he was given a weapon but never used it – a claim not believed by his captors.

“I never joined any fight,” he insists. “I had my weapon [AK47] but I just did normal duties taking supplies from location to location and following orders.”

He says he met the ISIS leader in Somalia, Abdul Qadir Mumin, several times.

“He used to visit all the ISIS camps and encourage them to fight.”

“And he’d reassure us all about going to heaven,” he adds.

It seems to lend credence to the belief that Mumin is still alive and operating – up until a few months ago anyway.

He says he was given training in sniping (which he didn’t finish) and map reading, which was interrupted when the Puntland military offensive began.

He says he travelled over from Ethiopia with six Moroccans, before meeting an Algerian recruit.

Fellow militants in the ISIS mountain stronghold were from countries including Tunisia, Libya, Tanzania, Kenya, Turkey, Argentina, Bangladesh, Sweden, and Iraq.

“The main target or focus was to rule the world,” he says. “Starting with this region as one of the gates to the world, then Ethiopia and the rest of the world.

“I heard so much talk about sending ISIS fighters to Bosaso, Ethiopia or Yemen. Sending people to other parts of the world and ruling the world was all part of the plan.”

The captives’ information has added to the belief that Puntland and Somalia is just the tip of a huge ISIS problem which is spreading and is able to cause terror in a range of ways.

Alex Crawford reports from Somalia with specialist producer Chris Cunningham and Richie Mockler. Photography by Chris Cunningham

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