Proactive Investors - Funko Inc (NASDAQ:FNKO) shares traded more than 6% higher as the pop culture lifestyle brand issued stronger-than-expected guidance for the second quarter despite a quarterly sales miss.
It guided revenue of $232.5 million at the midpoint for 2Q, about 1% above Street estimates of $230.1 million.
Profitability improved during the first quarter, with the company swinging from a loss per share of $0.49 to a loss per share of $0.17, ahead of estimates of a $0.30 loss per share.
But sales fell 14.4% year-over-year to $215.7 million, missing estimates of $220.3 million.
“For the 2024 first quarter, we reported solid overall financial results, with net sales within our guidance range, and gross margin and adjusted EBITDA well above our expectations,” interim CEO Michael Lunsford said in a statement.
Additionally, the company announced the appointment of Cynthia Williams as its CEO. She will take over the position on May 20 and is also expected to join the Funko board on this date.
Williams brings more than 20 years of senior leadership experience across consumer products, gaming and eCommerce industries to the position, Funko highlighted.
She most recently served as president of Hasbro’s Wizards of the Coast and Hasbro (NASDAQ:HAS) Gaming division, where she oversaw the company’s portfolio of games, including Dungeons & Dragons, Magic: The Gathering, and Monopoly.
“We are confident Cynthia has the experience, leadership capabilities and strategic vision to guide Funko into the future,” said Jesse Jacobs, chairman of Funko’s nominating and corporate governance committee.
“She has a deep understanding of pop culture, entertainment and fandoms, with a proven background in building consumer brands, developing worldwide strategies and driving global growth.”
Shares of Funko traded up 6.5% at $7.26 mid-morning on Friday.