They say that “everyone is a fan of something,” and Funko continues to embrace that mantra in serving its growing audience with consistency. Following a big first quarter that crushed expectations, the Washington-based company made famous by its ever-growing selection of Pop! Vinyl figures has done it again.
Funko reported a net sales increase of 38% to $191.2 million in the second quarter of 2019, up from $138.7 million in the second quarter of 2018. Gross profit increased 35%, net income increased to $11.4 million from $0.3 million, income from operations rose 98%, while gross margin decreased 90 basis points to 37.2%.
Sales of its collectible figures lines increased 39%, with yet another quarter of big growth for the Loungefly brand and other softline products, which experienced a net sales increase of 30%
“We believe these results and our continued opportunities for growth demonstrate that the world is increasingly viewing pop culture through the lens of Funko,” says Brian Mariotti, Funko’s CEO.
The continued growth in the core collectible figures category is attributed to a 16% uptick in the number of active properties, up to 592 from 510 in the second quarter of last year.
“Funko has become a solid entertainment content platform, and our brand continues to grow in awareness and popularity around the world,” adds Mariotti. “This unique position enables us to develop new and increasingly profitable sources of revenue that we expect will propel continued growth for many years to come.”
This year, the company has been expanding its reach and scope, with construction of a Hollywood flagship store, a Minor League baseball sponsorship, a new collection tracker app, a children’s book series launched at Barnes & Noble, and the acquisition of board game developer Forrest-Pruzan Creative.
“Our strong results in the first half of 2019 have allowed us to increase our guidance for the full year,” continues Mariotti. “More importantly, the growing range of opportunities for revenue growth, international expansion and entry into new categories make us confident that our best days lie ahead, and that our fans, partners, employees and shareholders can look forward to the future.”
Last month, Funko set up shop at Comic-Con International: San Diego (SDCC) with two booths, and more than 75 exclusive Pop! vinyl figures for sale alongside dozens of other exclusive items. Sales for those will be reported in the third quarter earnings this fall.
