Funko has reported its 2018 financial results for the fourth quarter and fiscal year, posting a 33 percent increase in year-over-year net sales for 2018.
“Once again, Funko had a terrific quarter and full year, significantly exceeding our own expectations,” said Brian Mariotti, Funko’s CEO. “Our balanced sales growth resulted from our growing base of entertainment properties, enhanced retail presence and expansion of our product categories and geographic markets.”
“In order to better serve our retail customers and our fans, we consciously made in-quarter decisions to better meet the strong demand we saw for our products. Some of these decisions reduced our gross margin, but allowed us to enlarge our market and satisfy better-than-expected demand for our products. For 2019, we expect our sales growth target to be 18% to 20%, as we see greater opportunities for growth, and we plan to continue to make investments to improve our operations and efficiencies over the longer term.”
In Q4, the company saw a net sales increase up 38 percent to $233.2 million, with gross profits up 29 percent to $85.7 million. Gross margins decreased 260 basis points to 36.7 percent, while income from operations increased 57 percent to $30.5 million. Net income increased 128 percent to $17.1 million and earnings per diluted share were $0.23.
For total fiscal 2018, net sales increased to $686.1 million, with gross profit increasing 30 percent to $258.0 million. Gross margin decreased 90 basis points to 37.6 percent.
The financial earnings report comes on the heels of the company’s recently announced plans to open a second retail location in Los Angeles later this year. The new space will broaden company awareness and display the breadth of Funko product and content providers that the brand carries.
“It was a no-brainer to open our second retail location in the television and film mecca of the world – Hollywood,” said Mariotti. “We couldn’t be more excited to have a presence among the most influential production studios and creative talent delivering pop culture content.”
The nearly 40,000 square foot space on Hollywood Boulevard is part of the Eastown development in the heart of East Hollywood. This emerging neighborhood is minutes from the Hollywood Pantages Theater and TLC Chinese Theater.
Funko’s first retail location opened in 2017 at the company headquarters in Everett, Washington and has become a must-see destination for collectors, pop culture enthusiasts, and entertainment aficionados.