A world pandemic did not cease ardent Funko collectors from stocking up on miniature fashions of their favourite popular culture characters. The firm beat on the highest and backside traces when it reported fourth-quarter earnings after on Thursday, sending shares up 10% after hours.
Here’s how the corporate did for the fourth quarter, in contrast with Wall Street estimates:
- EPS: 29 cents, excluding instances, vs.14 cents anticipated, in response to Refinitiv.
- Revenue: $226.5 million vs. $195.7 million anticipated, in response to Refinitiv.
During the fourth quarter, Funko’s web sales soared 6% 12 months over 12 months to $226.5 million, as extra people scooped up merchandise from “The Mandalorian” and merchandise from its Loungefly model.
Much of Funko’s progress got here from the U.S., the place sales jumped 18% to $171 million, the perfect quarter ever for Funko domestically.
Net sales of non-figure merchandise, together with luggage, wallets and T-shirts, grew 30% within the quarter in contrast with the identical interval final 12 months. Its Loungefly merchandise jumped 51%.
The firm additionally noticed power in key product traces like “Harry Potter,” “Marvel Comics” and “Dragon Ball Z,” it stated. Funko stated it elevated the variety of its energetic properties by 9% in the course of the quarter, providing 724 completely different licenses to customers in the course of the three-month interval.
Net earnings for the quarter ended December 31 rose to $14.9 million. That’s in contrast with a web loss throughout the identical interval in 2019.
“During the year, we successfully strengthened our direct-to-consumer platform, launched new games and toys that extended our reach, expanded our presence among key retail partners in mass and digital, and drove robust fan engagement through global virtual events,” CEO Brian Mariotti stated within the firm’s earnings launch.
Funko’s direct-to-consumer sales almost doubled in contrast with the prior 12 months, as extra prospects opted to buy on-line. This development has been seen throughout the board for a lot of toy retailers. Consumers had been already gravitating towards on-line purchasing previous to the coronavirus pandemic, however mass retail closures early in 2020 accelerated adoption.
To meet demand for merchandise primarily based on fashionable reveals and movies, Funko, like different toy producers, has begun providing on-line preorders. This permits prospects to make sure they will buy collectibles which can be usually solely produced in restricted portions.
Funko is assured concerning the future, forecasting income in 2021 to develop between between 25% to 30%.