Funko has raised its full-year outlook and surpassed Q2 earnings forecasts, causing stock to surge.
Earnings per share more than quadrupled to 25 cents on revenue of $191.2m, up 38%, led by strong demand across all territories and product categories. U.S. revenue grew 26% to #122.7 m, while international revenue leapt 59% to $68.5m.
Funko attributed the rapid growth to its continued push to license as many pop culture properties for Pop! figurines as possible, including new additions such as a collection for the third season of Stranger Things.
International growth played a major role in the quarter and now makes up more than half of the company’s overall business. International sales grew 65%to $68.5m, while U.S. revenue grew 26% to $122.7m.
Despite the proposed new 10% China tariffs on $300b, which come at a particularly sensitive time for U.S. retailers, Funko is confident that it will be able to pass along the bulk of tariff-related costs to customers, saying in a statement: “We expect price adjustments to be easily digested by (adult) consumers. On a comparable basis to value driven toy purchases, we see a greater degree of price elasticity in the collectors / fan-based categories.”
“Our strong results in the first half of 2019 have allowed us to increase our guidance for the full year,” said CEO Brian Mariotti. “More importantly, the growing range of opportunities for revenue growth, international expansion and entry into new categories make us confident that our best days lie ahead, and that our fans, partners, employees and shareholders can look forward to the future.”