Funko reported results for the second quarter since its IPO along with the full year 2017, and sales were up but profits were down. For the quarter, sales were up 28% to $169.5 million, and for the year, sales increased 20.9% to $516.1 million. International growth is driving the company; U.S. sales were up 11.3% in Q4, while sales outside the U.S. grew 109.6%. This fits with the buzz we were hearing at Toy Fair, which was that sales on the company’s core lines in the U.S. are flattening (see "Toy Fair Bits").
Profits declined for Q4 and the year. Net income declined from $15.8 million in Q4 2016 to $6.3 million in Q4 2017. For the year, profits declined to $4.4 million in 2017 from $26.9 million in 2016.
This pattern of increasing sales and declining profits was also what was seen in Q3 (see "Sales Grow and Earnings Shrink").
Profits Down
Posted by Milton Griepp on March 12, 2018 @ 1:31 am CT