A few days ago Funko presented their Q2 earnings. And things are as expected, Funko’s revenue in Q2 declined by almost 49%. But Star Wars is still a top performer and even bucks the trend! Click through for some more details!
The current pandemic has also heavily impacted Funko’s business. Revenue in the 2nd quarter of 2020 is down by almost 49% when compared to Q2/2019. Funko only made $98.1 million compared to $191.2 million in 2019.
However, it seems Star Wars was not impacted at all by the current pandemic. Funko, unlike Hasbro, offer a few more details about their top performing licenses (what Hasbro would dub “Partner Brands”) and you can find this handy chart in their earnings presentation which lists the top performing licenses.
As you can see Star Wars was the number 1 license in Q1/2020. With The Mandalorian in 3rd place. Now The Mandalorian has taken the top spot and Star Wars has dropped a few places down to 4th place.
But the important detail is how many sales the top property accounted for. Back in Q1 Star Wars (excluding the Mandalorian) was responsible for 4% of sales. In Q2 The Mandalorian was responsible for 9% of sales. So while Funko’s overall revenue dropped, The Mandalorian accounted for quite a few more sales. In other words: sales for Star Wars (Mandalorian) Funko Pops did not collapse. Actually, The Mandalorian sales in Q2 most likely even slightly surpass sales for Star Wars Funkos in Q1. One year ago, after a holiday season with no new movie, Star Wars didn’t even make the top 10. And now both the legacy Star Wars Funkos and the Mandalorian are top performing licenses for the company.
This shows that Star Wars toys, and here especially The Mandalorian toys, are quite popular again (despite what some may believe) after a really bad 2018 and early 2019. In 2020 the brand can even buck the general downward trend. Both Hasbro and Funko basically report the same thing, increased sales in very challenging times. And while Hasbro does not provide any details whatsoever Funko’s presentation shows that not only are sales better than one year ago (when sales were still bad), but also better than in previous quarters. Showing an actual upward trend.
Here is a more complete timeline, which lists the top performing Funko properties for the past two years:
This is the first time in several years that Star Wars is a top performer for Funko. You can also see that the Fortnite craze seems to be dying down. And it’s noteworthy that Harry Potter is a consistant top performer for Funko.
A typical Funko top performing license accounts for 2-4% of sales. A Solo line back in 2018 which barely made the top 10 was probably responsible for anything between 2-3% of sales. So when Star Wars in 2020 accounts for roughly 12-13% of sales (Mandalorian and Star Wars combined) overall Star Wars sales have increased, even if Funko’s overall revenue in Q2/2020 was down.
It is certainly remarkable that in times like these people still buy their Star Wars toys from several toy companies Let’s hope it provides plenty of incentive to come up with many new figures and toys. Several Ralph McQuarrie concept art Funko Pops were revealed a few days ago, but Hasbro certainly has several things in store as well for the rest of the year.
Read Funko’s earnings presentation here (PDF).
Earnings Report Funko The Mandalorian
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