Funko reported its fourth-quarter and full-year 2024 earnings today, fresh off an appearance at Toy Fair in New York City.
The Washington-based purveyor of toys, collectibles, and lifestyle products scored a 1% increase in Q4 net sales to $293.7 million versus $291.2 million in Q4 2023. For the year, net sales dipped to $1.05 billion versus $1.10 billion in 2023. Funko improved gross profit and margin, cut expenses, and reduced debt last year as part of the company’s ongoing turnaround.
Now, we are focused on executing our strategic growth plan that revolves around financial discipline and intentional diversification. We are expanding our presence in sports, music, and gaming, all high potential categories, and our approach prioritizes sustainable, long-term value creation. We expect measured top-line growth in 2025, weighted toward the second half of the year, and we are confident that our initiatives will drive meaningful acceleration over time. Funko has a strong foundation, a clear strategy, and a committed leadership team — we are excited about the opportunities ahead."
The Addition of a Toy Industry Vet
On February 24, Glenn Abell officially joined Funko as Senior Vice President of Sales for the U.S. and Canada with plans to drive growth across the wholesale and specialty sales channels.
“Funko is an icon in the pop culture space, and I couldn’t be more excited to join the company during this dynamic period of transformation,” Abell said in a release last month. “I look forward to leading the sales organization as we focus on the next period of growth and expansion for this world-class company.”
With more than two decades of experience in toys and collectibles, Abell most recently served as General Manager and Global Head of Construction at Mattel. Prior to that, he held roles at Moose Toys and The LEGO Group.
Crushing Closeouts and Strengthening the Brand
On this afternoon’s earnings call, Williams highlighted the company’s improved inventory position, noting that Funko expects to avoid selling into the closeout channel, a phenomenon that all major toy and collectibles companies have dealt with in the past few years. The absence of Funko product in the clearance bins is expected to restore luster to the brand.
A Look Ahead
Funko issued conservative guidance for 2025, including the potential impact of a 20% tariff on products imported from China. For the year, the company expects net sales of $1.050 billion to $1.082 billion with momentum anticipated in the back half.
While tariffs continue to be a wild card for the industry, as noted by today’s reversals in planned tariffs on Canada and Mexico, Funko is focusing on continued growth in the international and direct-to-consumer businesses alongside strong performance in its Pop! Yourself and Bitty Pop! lines.
At Toy Fair, the Bitty Pop! Bitty City collection of roads and environment packs was a big hit with retail partners.
BITTY POP! BITTY CITY
Get ready for adventures in the big city by connecting towns, rides, and more to create your very own Bitty City. Funko fans can collect building packs to customize their cities with scenery, road, and land pieces.
