Funko – Facing Challenges to Maintain Their Iconic $30M Pop Figures
The company founded in 1998 managed to become an icon of pop culture by creating the collectible vinyl figures with a peculiar design called precisely pops.
The popularity of them led them to close deals with companies such as Marvel, DC Comics, Sony Pictures, Nickelodeon, video game developers and creators of anime series.
But, after publishing the financial results of 2022, the situation is no longer so glorious.
Despite achieving profits for $17.4 million last year, this year the numbers reflect losses for almost $50 million.
This unleashed in a call with investors, where Brian Marietta, president of Funk, blamed macro factors and other specific problems of Funk for the loss, also confirmed layoffs and other measures that will be complied with to reduce costs.
Among the problems described in the Funk Finance Report of 2022 there is a surplus of inventory that affects the company’s operation capacity.
Basically Funk has more pop figures than you can store and will have to get rid of at least $30 million in product.
At the end of the year the total was $246 million, an increase of 48% compared to last year.
This includes inventory that the company intends to eliminate during the first half of 2023 to reduce costs and administer inventory levels to align them with the operational capacity of the distribution center.
This is expected to result in the elimination of approximately between $30 and $36 million.
Funk opened a distribution center last year, which is mentioned in the report, where the high income costs are discussed to store excess inventory in containers.
There is also talk of the need to which they were leaded to hire more personnel for the operations of the distribution center.
Via: The Gamer
Editor’s note: These figures are expected to end in some Arizona dump, so it will not be uncommon to see people organizing or even renting heavy machinery to dig up these pops!
A situation similar to the search for E.T.
of a few years ago.