Funko Inc. reported its financial results for the first quarter ended March 31, 2018.
Highlights include a net sales increase of 38.5 percent to $137.2 million. Gross margin increased 210 basis points to 37.4 percent, and included $1.8 million of costs related to Toys “R” Us shipments for which no revenue was recognized. Income from operations increased $5.8 million to $7.2 million, and net income increased to $2.2 million from a net loss of $5.6 million.
The increase in net sales was primarily driven by the continued expansion of products and properties in the company’s portfolio. In the first quarter this year, the number of active properties increased 8.6 percent percent to 454 from 418, and net sales per active property increased 27.5 percent. On a geographical basis, net sales in the U.S. increased 16.3 percent to $88.9 million and net sales in all foreign countries increased 113.6 percent to $48.4 million in the first quarter 2018 from the first quarter 2017 primarily due to growth in Europe. On a product category basis, net sales of figures increased 39.2 percent to $115.6 million and net sales of other products increased 35.0 percent to $21.6 million in the first quarter 2018 from the first quarter 2017.