Funko Q2 Earnings: Sales Growth Returns Amid Improvements in Inventory, Margin

If there’s a common thread this year, it’s that a number of players in the toy, game, and collectibles ،es need to tighten things up and streamline their businesses.

At Funko, that process has been ongoing for at least the last year and a half, and the needle appears to be moving in the right direction.

In the second quarter, Funko’s net sale، $247.7 million, a 3.2% increase versus the same period last year. Core Collectibles sales ،ed 6.4% while sales in the “Other” category jumped 16.9%. The company’s Loungefly division, which had been red ،t for years, saw another quarter of decline with sales slipping 13.4%. Gross profit hit $104 million, equal to gross margin of 42.0%. This compares with $70 million, equal to gross margin of 29.2% during Q2 last year.

Additionally, Funko continues to lower its inventory levels and reduce its debt significantly.

Williams notes that the direct-to-consumer business continues to grow while Pop! Yourself and Bitty Pop! are growing legs. She attributes “higher than anti،ted margins on sales in the value channel and resulting inventory reserve relief” to the company’s better-than-expected 42% gross margin.

Today’s earnings also came with a s،ing update as Yves Le Pendeven has been named Chief Financial Officer. The five-year Funko vet has held several roles with the company, most recently as Acting CFO.

Additionally, Funko Founder Mike Becker, aka Funmaker Mike, announced his departure from the company ahead of last month’s Comic-Con International: San Diego (SDCC).