Outlook
“We have made strong progress in reducing costs and right sizing our business.” said Steve Nave, Chief Financial Officer and Chief Operating Officer. “We are raising our full year adjusted EBITDA outlook due to that progress, but revising our net sales outlook to reflect the well documented retail inventory destocking. While Funko’s success, built on fan enthusiasm, has shown resilience to volatility in the broader market, we are not immune to these external factors in the short term.”
For the second quarter of 2023, the Company expects:
•Net sales of $240 million to $260 million.
•Sequential gross margin2 improvement relative to the first quarter adjusted gross margin1.
•SG&A approximately in line with the first quarter.
•Adjusted EBITDA1 of a loss of $10 million to break even.
•Adjusted Net Loss1 of $24 million to $16 million based on a blended tax rate of 25%, and adjusted loss per diluted share1 of $0.45 to $0.30 based on a weighted average diluted share count of 52.2 million shares.
For the full year 2023, the Company expects:
•Net sales to decline year-over-year between 10% and 5%.
•Adjusted EBITDA1 for the year to be between $65 million and $75 million.
