Tag Archives: brian mariotti

Funko eyes international growth after record second quarter and major executive moves

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Funko’s president, Andrew Perlmutter is to be appointed the firm’s new CEO as Brian Mariotti transitions to the newly created role of chief creative officer, detailing the top level moves the same week the firm delivered ‘its largest topline quarter in company history.’

Last week, the pop culture specialist revealed that second quarter net sales had increased a massive 141 per cent to hit $236.1 million, with ‘broad-based strength’ in all of its markets, particularly Europe where sales increased 393 per cent.

In the firm’s move to maintain its creative leadership in the pop culture consumer products market while positioning itself for long-term growth, it has now detailed its executive leadership transition.

The changes are expected to come into effect from January 3, 2022, allowing both leaders to ‘uniquely contribute to the next phase of Funko’s growth.’ As COO, Mariotti will be able to concentrate on the creative decisions at the company, overseeing product innovation, fan engagement, business development, M&A, and Funko’s Digital product line.

It all follows some record results for Funko who has seen its flagship Pop! Brand grow 137 per cent on strong evergreen product sales, while Loungefly led its non-figure product sales which itself saw an increase of 136 per cent.

Further and more long-term growth is now fully on the cards for Funko as the firm readies to see Perlmutter take on the CEO role. Having first joined the company as senior vice president of sales in 2013, he was promoted to president in 2017 where he currently has oversight over key strategic and operational functions.

“I’m incredibly proud of what we have accomplished at Funko,” said Mariotti. “We built a small company into the leading pop culture platform, offering our fans across the globe a way to interact and connect with some of their most beloved icons.

“This transition will allow me to remain closely involved with the business while focusing more exclusively on the creating and fan-centric areas I am passionate about.”

On the company’s record Q2 financial results this year, he added: “Our teams delivered the largest top line quarter in company history.

“Second quarter net sales more than doubled versus a year ago and also eclipsed 2019 levels, reflecting broad-based strength across our products, channels and regions.

“We are pleased with our strong year-to-date performance in 2021 and our ability to deliver against our core operating and growth strategies despite the challenges of the pandemic.

“As we approach the second half of the year, we are continuing to navigate the uncertain macro environment, while remaining focused on delighting and engaging our fans around the world.”

Perlmutter, added: “I am honoured to assume the role of CEO in January, while maintaining the longstanding and fruitful partnership Brian and I have enjoyed for many years.

“With the transition, we plan to continue to pursue a four-pillar approach that focuses on leveraging our core Pop! Platform, driving additional revenue streams through product diversification, accelerating growth on our direct-to-consumer channel, and expanding our international business.”

Funko sees 14 per cent sales dip but CEO Brian Mariotti praises global team in a ‘challenging 2020’

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Despite a decrease of 14 per cent in net sales in its third quarter financials year on year, Funko’s CEO Brian Mariotti has praised the efforts of the pop culture specialist’s international teams in its executions throughout a challenging 2020, and believes the firm is ‘well-positioned for the Holiday season’ with its most diverse product offering to date.

The company’s chief executive has also expressed optimism for the outfit’s Q4 2020 performance, citing expanded presence within key retailers as it makes plans to “remain agile in the face of today’s dynamic environment.”

Funko saw net sales decrease 14 per cent to $191.2 million in the third quarter of 2020 compared to $223.3 million in the same period the year prior. The decline has been primarily attributed to the slower recovery from Covid-19 impacts within the domestic specialty channel and European region.

These impacts were partially offset by growth within the domestic third party e-commerce and mass-market channel as well as the Company’s own direct-to-consumer business. Funko’s direct to consumer e-commerce sales increased more than 150 per cent compared to the year prior.

Meanwhile, Funko’s Loungefly branded products grew 25 per cent compared to 2019, driven by the momentum of Loungefly.com and within wholesale channels.

In the third quarter of 2020, the number of active properties was 715, which represents a 14 per cent increase from the third quarter of 2019.

On a geographical basis, net sales in the United States decreased four per cent to $140.9 million. Net sales internationally decreased 34 per cent to $50.3 million, reflecting more significant impacts from Covid-19 primarily within the European region.

On a product category basis, net sales of figures decreased 18 per cent to $145.0 million. Net sales of other products decreased one per cent to $46.2 million, reflecting strength in Loungefly branded products which increased 25 per cent compared to the prior year due to strong momentum on Loungefly.com as well as at wholesale retailers.

“Our teams have executed well in 2020 despite the challenges presented by the pandemic,” said Brian Mariotti, chief executive officer. “In the third quarter, we outperformed revenue expectations, reflecting strength within our domestic mass market and digital channels.

“We also maintained strong gross margins and cost controls, which allowed us to deliver improved profitability. The quarter was highlighted by our successful evergreen programs, expanded product offerings and enhanced e-commerce capabilities, all of which are enabling us to drive increased engagement with our fans around the globe.

“While we expect to face continued headwinds in specific channels and regions in the fourth quarter, we believe we are well positioned for the holiday season with our most diverse product offering yet and an expanded presence within key retail partners. Looking further ahead, we are staying focused on our four key strategies and remaining agile in the face of today’s dynamic environment.”

The Company anticipates that effects from the Covid-19 pandemic will continue to impact sales in the fourth quarter of 2020 and currently expects net sales on a percentage basis to be down 10 per cent to eight per cent compared to prior year.