A bolstered direct to consumer platform, the launch of new games and toys, and an expanded presence across its key retail partners have helped Funko to strong fourth quarters results for 2020.
The pop culture specialist has reported a six per cent sales growth to $226.5 million, reflecting what CEO Brian Mariotti has described as a “better than expected performance across brands, products, channels, and geographies.”
Net sales for the firm grew in the fourth quarter 2020 from the $213.6 million in the same period the year prior. The increase is reflective of the business’ strength in its domestic market in the US, which was partially off-set by the impact of Covid-19, particularly within Europe.
Funko grew its number of active properties to 724 from 667 in the fourth quarter of 2019. On a geographical basis, net sales in the United States increased 18 per cent to $171.5 million, while net sales in Europe decreased 24 per cent to $40.3 million.
Net sales in other international regions decreased seven per cent to $14.7 million, both primarily driven by continued impacts from COVID-19.
“We are pleased to finish the year with strong fourth quarter results, including six per cent sales growth, which reflects better than expected performance across our brands, products, channels and geographies,” said Mariotti.
“Against a challenging environment in 2020, our teams were resilient, quickly adapted to the dynamic environment and remained focused on executing our strategic growth priorities. 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.
“We believe the Company is strongly positioned to deliver solid top line growth and improved profitability in 2021. We are remaining focused on our strategies to maximize Funko’s core pop culture platform, drive further category diversification, expand internationally and accelerate our direct-to-consumer business.
“For the full year, we expect to achieve revenue growth of 25 per cent to 30 per cent versus 2020, which also reflects growth from pre-pandemic levels in 2019.”
On a product category basis, net sales of figures were flat at $170.2 million reflecting strength within the domestic market which was offset by international performance.
Net sales of other products increased 30 per cent to $56.3 million versus the fourth quarter of 2019, primarily reflecting strong growth in the company’s Loungefly branded products, as well as strength within our games, plush and accessory categories.
Pop! branded products grew one per cent to $169.4 million, while Loungefly branded products grew 51 per cent to $31.6 million in the quarter reflecting strength in both its wholesale and direct-to-consumer channels.
Net sales of other branded products increased five per cent to $25.5 million, reflecting a strengthening board game, toy and figure offering from the firm.
primarily reflecting strength in Funko’s expanded board game, toy and figure offerings.
“We feel confident about the trajectory of the business and believe we are well-positioned from a strategic, operational and financial perspective,” said Jennifer Fall Jung, CFO.
“We expect to continue investing for growth in 2021 while also driving strong Adjusted EBITDA margins and improvement on the bottom line.”