Funko has seen record first quarter net sales increases across both its US and European markets, reflecting what the pop culture specialist has cited as ‘broad-based strength across geographies, products, and channels.’
Net sales grew 38 per cent to $189.2 million compared to $136.7 million in the first quarter of 2020. The firm also saw the number of active properties increase by 12 per cent to 762 from 681 the year prior, with net sales per active property increasing 24 per cent.
US sales grew 39 per cent to $136.5 million, while Europe saw its net sales increase a full 55 per cent to $39.8 million. Other international regions saw a more modest growth of two per cent to $12.9 million, but Funko has highlighted the ongoing disruptions that many of those regions are experiences due to Covid-19.
Funko’s Pop! branded products grew 33 per cent while net sales across its Other segment – meaning non-figure products – increased by 52 per cent, led by Loungefly branded products which grew 82 per cent in the quarter. Funko has also been strengthened by its recent developments in games and plush.
Direct-to-consumer sales increased more than 160 per cent driven by continued strong demand on the Company’s Funko and Loungefly e-commerce sites, while 66 per cent of the company’s sales were attributed to evergreen content.
“Improving consumer demand in the US and Europe contributed to broad-based strength within our brands, products and distribution channels, leading to a record first quarter,” said Brian Mariotti, chief executive officer.
“Throughout the pandemic, our teams have maintained a relentless focus on delivering innovation and engaging with our fans around the world, positioning the business to drive topline growth as the demand environment strengthens.
“In the first quarter, this enabled us to achieve sales growth of 38 per cent, strong Adjusted EBITDA margins and a substantial increase on the bottom line.
“We are confident that our innovation pipeline, strategic focus and experienced teams will enable us to deliver continued growth and expansion in the dynamic macro environment. We’re investing behind our key strategic priorities and expect to achieve topline growth of 33 per cent to 38 per cent in 2021, above our previously stated range, while also driving increased profitability.”
On a brand basis, Pop! branded products grew 33 per cent to $150.3 million, reflecting strong growth in the US and Europe. Loungefly branded products grew 82 per cent to $24.5 million. Both brands generated strong demand in the US and Europe, as well as strength across our direct-to-consumer channels.
Net sales of other branded products increased 41 per cent to $14.3 million driven by board games, plush and action figures.