Collectible toy maker Funko Inc. grew direct-to-consumer ecommerce sales 61% year over year in its fiscal first quarter ended March 31, 2023. Funko DTC sales “continue to eclipse the ecommerce industry’s single-digit growth rate,” said CEO Brian Mariotti.
Despite the DTC growth, the retailer’s net sales decreased 18% year over year to $251.9 million. However, net sales at its two physical stores (in Hollywood, California, and Everett, Washington) grew 41% year over year. Mariotti attributed that to a nearly 50% increase in foot traffic.
“While we can’t make up for all the lost retail opportunity, we are continuing to see extraordinary growth in the channels we do control,” Mariotti said.
Funko ecommerce sales
The brand launched a new, Salesforce-powered website in its fiscal Q1, he said. He did not say what platform Funko used for its previous website. The transition better allowed Funko to upgrade its order management system, improve functionality, receive better analytics and improve integration across its websites, he said. Funko ecommerce sales account for about 17% of net sales, Mariotti said.
“In the channel — where we control inventory levels and product newness — demand is at an all-time high,” Mariotti said. “Our data suggests that among avid collectors, many purchases that may have occurred at a retail partner in the past are migrating to funko.com.”
At WonderCon, the first convention in 2023 that Funko attended, the new site helped more than double Funko’s ecommerce revenue compared with the prior year’s event, he said. WonderCon is an annual comic convention in Anaheim, California.
For the fiscal first quarter ended March 31, 2023, Funko reported:
- Net sales decreased 18% year over year to $251.9 million.
- Funko direct-to-consumer sales grew 61% to $42 million
- Wholesale decreased 26% year over year to $210 million. Funko chief operating officer and chief financial officer Steve Nave attributes this to retailers being cautious about restocking and inventory levels.
- U.S. net sales declined 23% to $178 million. Meanwhile, Funko sales in Europe grew 4% to $59 million.
Percentage changes may not align exactly with dollar figures due to rounding. Check back for more earnings reports.
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