Washington state-based collectible pop culture toyco Funko saw its net sales increase 32% in Q2 2018 to US$138.7 million from US$104.7 million in Q2 2017. CEO Brian Mariotti equated the massive rise in sales to an increased product portfolio that recently added Pokemon and Fortnite to the mix, and a growing geographic footprint.
This most recent quarter, the toyco’s number of active properties increased 26% to 510, up from 404, and net sales per active property increased by 5%. Geographically, net sales in the US increased 33% to US$97.1 million. Meanwhile, net sales in all foreign countries increased 32% to US$41.6 million mainly due to growth in Europe.
In product categories, net sales of Figures increased by 31% to US$114.5 million and net sales of Other Products increased 42% to US$24.2 million versus the same quarter last year.
Its income operations increased 125% to US$9.1 million with net income improving US$5.4 million to US$900,000.
Funko’s gross margin also increased by 120 basis points to 38.2% compared to 37% in Q2 2017 due to product margins in Europe and a positive impact from the acquisition of Underground Toys in Q2 2017.
Selling, General & Administrative expenses increased by 33% to US$34.2 million up from US$25.8 million in 2017 which was due to growth in the business and increased expenses associated with direct distribution in Europe, Loungefly operations and Funko Animation Studios. The toyco acquired UK studio A Large Evil Corporation in December and renamed it Funko Animation Studios to produce more of its animated shorts like the Marvel ones which have garnered millions of view on YouTube.