Funko Reports Q4 Sales Growth Despite Losses

Funko Inc. reported a mixed performance in its Q4 earnings call for 2024, revealing a net loss of $1.5 million, a significant improvement from the previous year's loss of $10.8 million, while global sales slightly increased to $293.7 million. Direct-to-consumer sales grew to represent 29% of overall sales, with notable growth in sports and music collaborations. Despite these positive trends, U.S. sales declined by 9.7%, reflecting challenges in consumer spending and inventory management among retailers. Looking ahead, Funko has guided for a decline in first-quarter earnings and expects revenue for 2025 to remain flat or slightly improve, along with anticipated impacts from a 20% tariff on imports from China. The company's focus on diversifying its product offerings and strategic growth in high-potential markets remained evident. However, the outlook indicates cautious optimism amid ongoing economic uncertainties.