New funk at Funko: Q2 earnings take a big hit
Aug 4, 2023, 12:02 PM
(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.