The stock price of the American toymaker Funko Inc. (FNKO) grew 6% on Monday, extending gains after it announced its fourth-quarter earnings of 2020 on Thursday. The net sales of FNKO increased 6% year-over-year to $226.5 million.
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Funko Inc. at a glance
Funko Inc. is an American company that is famous for making pop—culture collectibles and more famously known for manufacturing bobbleheads. FNKO is known for manufacturing diverse product line that includes vinyl figurines, collectibles, bobbleheads, action figures, lamps, headphones, apparel, housewares and other electronic devices such as USB drives. FNKO aims to provide its customers different tangible ways to take their fandom offline.
Pandemic and the rise in demand of FNKO
The sales of FNKO grew 6% year-over-year, but in the United States, the sales increased 18% which helped to offset the decline of European market sales. More and more people started to buy merchandise of the hit Disney+ showThe Mandalorian, which contributed to the 6% sales year-over year. FNKO also saw an increase in sales of its key products related to Harry Potter, Marvel Comics and Dragon Ball Z. Amidst the pandemic, more and more people were stuck at home but this did not stop the people from collecting the collectibles of their favorite characters. As the pandemic grew worse, people were stuck in homes for a longer period of time with nothing to do. People wanted to play games rather than just adding collectibles to their shelves. FNKO increased awareness of its board games and other products which led to the 30% increase in the sales of non-figure products.
The effect of announcement of fourth quarter earnings
After the announcement of fourth-quarter earnings of 2020, the stock price of FNKO stock increased 15.9% and closed at $17.7, as compared to the $15.33 closing of the prior day. Looking forward, FNKO projects are continuing to gain momentum as it moves ahead in 2021. FNKO has told its investors that they should expect a growth of 25% to 30% in net sales this year. Taking into account the $652 million sales of 2020, FNKO can do somewhere in between $815 million and $848 million sales this year. In order to meet the demand of products that are based on famous films and shows, FNKO has started to offer online pre-orders. This helps the customer in ensuring the purchase of the items or collectibles that are produced and sold in limited quantities only.