Pop culture specialist, Funko is seeing growing demand for products such a Pop! Vinyl figures at a time it has recognised as ‘tough for traditional toy companies and retailers.’
In its first quarter earning for the year, the firm has seen net sales increase 38.5 per cent to $137.2 million, a surge it has achieved despite the liquidation of major toy retailer, Toys R Us.
Funko CEO Brian Mariotti has put the success down to the Funko business model, one that does not ‘rely on hits’ but rather through a ‘balanced mix of evergreen back catalogues and new content across movies, TV, video games, music and sports.’
The pop culture specialist has reported a gross margin increase of 210 basis points to 37.4 per cent, of that $1.8 million in costs are related to Toys R Us shipments.
The recent results have left Funko feeling very confident about its future within the toy and collectables space. They also coincide with the recent reported growth of the kidult market, one that has grown 13 per cent in the UK alone over the last year.
“We had another great quarter and continued to deliver strong growth and consistent results across the business,” said Brian Mariotti, chief executive officer, Funko.
“Sales in the first quarter increased 39 per cent to $137 million with strong demand across the board. At a time when traditional toy companies and retailers are struggling, we believe our continued strong and consistent results are a testament to our differentiated business and operating model.
“Our business is not hit driven, but rather, a balanced mix of evergreen back catalogue content and newly released content across movies, television, video games, music and sports.
“With the globalisation of content and the worldwide recognition of our products and Pop! brand, we are seeing growing demand for our products around the globe and could not be more excited about our future.”