Store closures across the US and the rest of the world at the hands of the Covid-19 pandemic have ‘significantly impacted,’ second quarter results for the pop culture collectables specialist Funko. Net sales for the firm decreased 49 per cent to $98.1 million in its Q2 2020 earnings compared to the $191.2 million in the same period last year.
The year-over-year decline has been attributed primarily to impacts from Covid-19 during the quarter, including the prolonged closure of many of the company’s retail partners.
The second quarter of 2020 also saw the number of active properties total 644, decline of five per cent on Q1 2020 numbers, but an increase on the second quarter of 2019. Net sales in the US dropped 36 per cent to $77.9 million, while international net sales plunged 71 per cent to $20.2 million.
The European region was especially challenged in the quarter as Funko made the strategic decision to shift new products slated for the second quarter into the third quarter of 2020. Sales related to Loungefly branded products declined 25 per cent compared to the prior year despite many of its retailers being closed, reflecting resiliency in the Loungefly brand during the quarter.
Despite what makes for pretty grim reading, Funko is optimistic for the second half of the year, boasting what it calls its ‘most diverse product offering in the market,’ ready to land for the holiday season.
Brian Mariotti, Chief Executive Officer, said: “Although our second quarter results were significantly impacted by store closures in both the US and abroad, we were able to accelerate our connection and engagement with our fans through continued innovation and new product introductions as well as the expansion of our direct to consumer business. In Q2, we saw strong performance on our own e-commerce sites which delivered triple-digit sales growth.
“Looking at the second half of the year we are excited to have our most diverse product offering in the market come this holiday season. In the face of the highly dynamic environment, we are staying nimble and remain committed to our key growth strategies.”