Funko international sales are down -34%, with the impact of Covid-19 felt most in Europe, but gross margin is up.
Funko has revealed consolidated financial results for the third quarter ended 30th September 2020.
Net sales are down -14% to $191.2m compared to $223.3m in the same period 2019. By geographical region, net sales decreased -4% in US to $140.9m, while internationally they fell -34% to $50.3m. Funko says the figures reflect the more significant impact of Covid-19 in Europe. Sales of figures fell 18% while sales of other products decreased by only 1%. Funko’s Loungefly brand was a strong performer in the quarter, with sales increasing +25% thanks to strong momentum at Loungefly.com and 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 programmes, expanded product offerings and enhanced eCommerce 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.”
Funko expects 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% compared to the prior year.