Funko will be throwing away a whopping $30 million worth of Pop! Vinyl figures that are are overflowing in their warehouses with mountains of unsold inventory that neither retailers or collectors want, and let’s be honest, this was inevitable. Funko has had a lot of success in the past decade with expanding their brand into licenses, which saw some fast sell-outs and an enormous amount of collectors buying these. Pop! Vinyl’s were everywhere, with store exclusives, chase figurines, convention exclusives and they just kept pumping this line for all that it was worth. At first, Funko started out with some sloppy paint applications on their Pop!’s, but soon realized when people started dropping the line that their fans demanded a bit more quality to these tacky collectibles, and changed to better paint apps to meet demand.
Even years of this upgrade, the line is now seeing significant decline, as fans have stopped buying this brand and probably moved onto something else. It’s clear that Pop! Vinyl’s are nearing it’s end (for the most part), as Funko has to throw out significant inventory that no one asked them to make to begin with, and from the sound of it, they would rather throw it away rather than do the corporate responsible thing and donate to children in need, in the United States, Ukraine and other countries that children would enjoy these. Hopefully, the right person at Funko is reading this, as I personally know that people at Funko have read the site in the past, and we’re asking them to do what’s best for the children, donate unwanted inventory rather than tossing it.
The fourth quarter in 2022, Funko saw a drastic decline in demand, and even had to rent out additional warehouse space to hold unwanted inventory, which as caused some financial difficulties for the company that has seen nothing but enormous financial gain for years. Apparently, Funko was holding onto about $250 million worth of Pop! Vinyls at the end of 2022, which was a 48% more than what they had in 2021. This is why they’re dumping $30 million worth of toys into the trash, as it’s now worth less than the cost of keeping it, and opening new storage units is hurting the company.
Funko has also reported a loss of $47 million in the 4th quarter of 2022, down from a profit of $17 in 2021. The Funko stock has slo fallen 9.4% this year. During the pandemic, they saw an increase in revenue where most businesses and companies were struggling, with a $1 billion in sales in 2021, which was a 58% increase from 2020.
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