Funko is back to crushing expectations.
The Washington-based purveyor of toys, collectibles, games, and lifestyle products reported a 38% spike in net sales to $189.2 million in the first quarter of 2021 versus $136.7 million during the same period last year. The company’s net income, gross margin, and EBITDA also increased as strong demand for pop culture licensed products has recovered in recent months.
Sales of Funko‘s signature Pop! branded products grew 33%, while Loungefly and other non-figure products — including games, plush, and accessories — spiked 52% in Q1. Funko’s e-commerce business — which has rapidly expanded in the past 14 months — experienced a 160% sales increase in the first quarter led by strong traffic and sales to the company’s own Funko and Loungefly sites.
“Improving consumer demand in the U.S. and Europe contributed to broad-based strength within our brands, products, and distribution channels, leading to a record first quarter,” says Funko CEO Brian Mariotti. “Throughout the pandemic, our teams have maintained a relentless focus on delivering innovation and engaging with our fans around the world, positioning the business to drive topline growth as the demand environment strengthens.”
Funko says that 66% of its Q1 sales were attributable to evergreen content. Beyond the growth in Pop!, Funko says that sales of Loungefly products grew 82% in Q1.
Regionally, Funko’s overall sales grew 39% in the U.S. and 55% in Europe. Net sales elsewhere in the world grew 2% as certain companies continue to experience pandemic-related disruptions.
Future Outlook and Guidance
“We are confident that our innovation pipeline, strategic focus, and experienced teams will enable us to deliver continued growth and expansion in the dynamic macro environment,” Mariotti says. “We’re investing behind our key strategic priorities and expect to achieve topline growth of 33% to 38% in 2021, above our previously stated range, while also driving increased profitability.”
Exclusive: Funkoween Returns and New Product Reveals
Beginning May 24, Funko will celebrate the halfway mark to Halloween with the return of Funkoween, a virtual event across Funko’s social channels that will offer previews of new product lines set to debut this fall. The year, the Toy Book will exclusively reveal a brand new product line during the event, which is designed to bring Funko “Funatics” together through digital activations, shopping, and partnerships with key licensors, retailers, and media.
“The fan sentiment we received last year proved that Halloween is one of the most popular holidays for our fans,” Funko’s Director of Retail Marketing, Billy Brisebois tells the Toy Book. “Funko is all about the fan and we are very excited that Funkoween in May has become a staple of our product announcements for years to come!”
The return of Funkoween marks the continuation of Funko’s very successful virtual events series that was launched last spring as the COVID-19 pandemic took hold.
New product reveals will occur daily when Funkoween begins later this month.
