Freddy Funko and the gang are doing big business.
Funko Inc., the Washington-based maker of toys, games, collectibles, and pop culture-infused lifestyle products, reported record net sales of $315.7 million in the second quarter, an increase of 33.7% over the same period last year.
The success and growth in net sales comes alongside the continued diversification of Funko’s product offerings. Funko says that its core collectibles category saw a 21.3% bump between April and June while its Loungefly division experienced a massive, 114% spike to help drive the company to its highest level of first-half net sales in history at $624 million, a 46.7% increase over last year.
“All of our reported brand categories grew double digits, indicating robust demand across the brand portfolio,” says Funko CEO Andrew Perlmutter. “As we enter the second half of the year, our focus remains on executing against our four growth pillars, continued innovation in core collectibles, revenue diversification, international expansion, and further development of our direct-to-consumer (D2C) channel.”
The D2C business grew 26% as Funko continued to build on its e-commerce platform and its physical locations, including retail stores in Hollywood and Everett, Washington. The company’s work in the NFT space, including Digital Pop! NFT drops also gained steam.
While sales boomed, net income declined 24.6% versus the same period last year to $15.8 million. Overall margin and EBITDA also declined as on-hand inventory spiked 170.9%. The company cited supply chain issues and other factors for the changes.
In recent months, Funko acquired Mondo, a maker of high-end collectibles, including vinyl records, posters, and action figures, and revealed plans to enter the world of AAA video games through a collaboration with 10:10 Games. Last month, the company made its triumphant return to Comic-Con International: San Diego (SDCC) with a massive presence dubbed “Funkoville.”
Additional information will come later this afternoon during an earnings call with analysts and investors. Story developing…
