The growth in Q4 was heavily concentrated in the U.S.; sales were down 24% in Europe and 7% in other non-U.S. regions, the company said. The Pop! brand was up 12% in the U.S. and 1% over-all. Non-figure revenue was up a more robust 30%.
The Q4 results were a big improvement over Q3, when sales were down 14%, and Q2, when sales were down 49% (see "Funko Sales Down 14% in Q3").
Q4 earnings were improved over a year ago; net earnings were $8.9 million in Q4 2020, vs. a loss of $4.2 million in Q4 2019.
For the year, Funko sales were $652.5 million, down 18% from $795.1 million in 2019. Despite the decline, Funko was profitable, albeit at lower levels: 2020 earnings were $3.96 million, down 66% from $11,725 million in 2019.
Key takeaways from the conference call:
- As we saw in every other category, evergreens grew in importance to Funko’s sales in 2020, growing to represent 66% of the company’s business in 2020, from 51% in 2019.
- Funko spent a lot on growing its ecomm business in 2020, increasing the number of SKUs on its direct-to-consumer site from a few hundred to over 2000.
- Although Funko sold more product and achieved more social media presence with some virtual events compared to the same live events the previous year, the company does not plan to abandon shows, but does expect conventions to have both live and virtual elements, and for some virtual events to continue.
- Funko retailers are taking more preorders, even for products six to nine months out.
- While port congestion is a problem, it’s not materially affecting the business.
Funko is expecting 25 to 30% growth in 2021 vs. 2020, with 30% growth in Q1.