LOCAL NEWS

New funk at Funko: Q2 earnings take a big hit

Aug 4, 2023, 12:02 PM

Funko earnings hit...

Funko headquarters in downtown Everett. (Photo by Frank Sumrall/MyNorthwest)

(Photo by Frank Sumrall/MyNorthwest)

It hasn’t been a good year at Everett-based Funko. The toy company had a difficult time when it moved its warehouse to Arizona. It got hit with lawsuits. The CEO stepped down. Now, it put out a second-quarter loss of 13.16%, according to Yahoo! Finance.

Funko-A shares have lost about 32.7% since the beginning of 2023. Shares dropped 7% in after-market trading.

More on Funko: CEO taking leave of absence as company struggles

“Running the business like a lean startup and investing in areas where we can grow profitably will guide and inform every decision we make,” interim CEO Michael Lunsford told investors. “The best path forward for Funko is to focus our energy on fewer product lines.”

Funko-A has underperformed in the market so far this year.

In July, Funko began layoffs of between 12% and 13% of its staff, or 180 to 200 workers. The company said the move would cost between $2.4 million and $2.8 million in severance in the upcoming quarter, but it would save up to $22 million annually.

Company’s operations: Move to Arizona goes south

At the same time, retail sales increased 10%, and e-commerce increased 19% in the second quarter compared with the same period a year ago.

Some of Funko’s key retail partners, such as Target and Walmart, have had weak sales, Bank of America analysts Robert Ohmes, Alexander Perry, and Madeline Cech told investors in July.

The company said it expects less wholesale revenue this year and, as a result, lowered its full-year revenue outlook to a range of $1.09 billion to $1.12 billion from the previously forecast range of $1.19 billion to $1.26 billion.

Local News

snow plow...

Frank Sumrall

Who will join Plowie McPlowface as Lynwood snow plow naming contest returns

Some current snow plow names from previous contest winners include Plowie McPlow Plow, The Big Leplowski, Sir Plows-A-Lot and Betty Whiteout.

2 minutes ago

lawsuit wrongful death...

L.B. Gilbert

Family settles wrongful death lawsuit with Seattle for $1.8M

The family of a man who died of a heart attack after first responders delayed responding to the incident has reached a settlement in their wrongful death lawsuit with the City of Seattle.

34 minutes ago

(Photo from KIRO 7)...

Louie Tran, KIRO 7 News

Tacoma parents allege school workers physically assaulted children, including son with autism

A Tacoma mother and father accused workers with Tacoma Public Schools of physically assaulting their children multiple times, including the father’s son with autism.

53 minutes ago

Microsoft CEO Satya Nadella speaks during the introduction of the integration of Microsoft Bing sea...

Suman Naishadham, Associated Press

Microsoft CEO says unfair practices by Google led to its dominance as a search engine

Microsoft CEO Satya Nadella said Monday that unfair tactics used by Google led to its dominance as a search engine, tactics that in turn have thwarted his company’s rival program, Bing.

2 hours ago

(Photo from Washington State Department of Transportation)...

L.B. Gilbert

2 semis crash on I-5 early Tuesday, delaying morning commuters

Two crashes on northbound Interstate 5 have snarled traffic for Tuesday morning commuters as crews work to clear the semis.

2 hours ago

Image: The outside of Hard Rock Hotel is seen on April 14, 2023 in New York City....

Steve Coogan

Seattle’s Hard Rock Cafe to permanently close Dec. 1

A spokesperson confirmed to KIRO 7 the company is open to having another location in Seattle if the right one can be found.

13 hours ago

Sponsored Articles

Swedish Cyberknife...

September is Prostate Cancer Awareness Month

September is a busy month on the sports calendar and also holds a very special designation: Prostate Cancer Awareness Month.

Ziply Fiber...

Dan Miller

The truth about Gigs, Gs and other internet marketing jargon

If you’re confused by internet technologies and marketing jargon, you’re not alone. Here's how you can make an informed decision.

Education families...

Education that meets the needs of students, families

Washington Virtual Academies (WAVA) is a program of Omak School District that is a full-time online public school for students in grades K-12.

Emergency preparedness...

Emergency planning for the worst-case scenario

What would you do if you woke up in the middle of the night and heard an intruder in your kitchen? West Coast Armory North can help.

Innovative Education...

The Power of an Innovative Education

Parents and students in Washington state have the power to reimagine the K-12 educational experience through Insight School of Washington.

Medicare fraud...

If you’re on Medicare, you can help stop fraud!

Fraud costs Medicare an estimated $60 billion each year and ultimately raises the cost of health care for everyone.

New funk at Funko: Q2 earnings take a big hit