Shares of Chinese toymaker Pop Mart, known for its popular Labubu dolls, added to their more than 30% decline so far this year, following a sharp decline in third-quarter revenue.
Shares were last down under 2%, paring losses after declining more than 6% in early trading Wednesday. They have ended in the red in nine of the past 12 sessions.
The company reported a 45% to 50% year-on-year drop in third-quarter revenue on Tuesday, according to a filing.
The steep sales decline raises questions about whether the frenzy surrounding Labubu and other collectible toys can sustain the company's rapid growth, particularly in overseas markets.
The decline was particularly steep overseas, with revenue in the Americas plunging 70% to 75%, while Asia-Pacific sales dropped 65% to 70%. Revenue in mainland China fell 25% to 30%, while Europe and other regions recorded a 50% to 55% decline.