Collectible toy maker Funko Inc. reported a 61% year-over-year increase in direct-to-consumer ecommerce sales in its fiscal first quarter ended March 31, 2023. According to CEO Brian Mariotti, the growth “continues to eclipse the ecommerce industry’s single-digit growth rate.” Despite the DTC success, the retailer’s net sales decreased 18% year over year to $251.9 million.

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Mariotti attributed the 41% year-over-year growth in net sales at Funko’s two physical stores (in Hollywood, California, and Everett, Washington) 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.

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Funko launched a new, Salesforce-powered website in its fiscal Q1, which allowed the company to upgrade its order management system, improve functionality, receive better analytics and improve integration across its websites. According to Mariotti, Funko ecommerce sales account for about 17% of net sales. “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,” he said.

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At WonderCon, the first convention in 2023 that Funko attended, the new website helped more than double Funko’s ecommerce revenue compared with the prior year’s event. WonderCon is an annual comic convention in Anaheim, California.

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Funko reported a 26% year-over-year decrease in wholesale sales to $210 million, which chief operating officer and chief financial officer Steve Nave attributed to retailers being cautious about restocking and inventory levels. U.S. net sales declined 23% to $178 million, while Funko sales in Europe grew 4% to $59 million.

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Funko’s success in the ecommerce space is indicative of the larger trend of consumers turning to online shopping.
Sources: https://www.digitalcommerce360.com/2023/05/05/funko-ecommerce-sales-new-website/