Funko stock sinks more than 25% after dismal outlook in a toy industry that isn't much fun right now

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Shares of Funko nosedived in after-hours trading on Wednesday, after the collectible toy maker's first-quarter outlook came up far worse than expected.

Shares of Funko Inc. nosedived in after-hours trading on Wednesday, after the collectible toy maker issued a financial outlook that was far worse than expected and said efforts to improve performance might not take hold for months.

Funko FNKO shares plunged 27% in after-hours trade. The maker of the Pop line of figurines modeled after popular figures from movies, TV shows and sports forecast first-quarter sales of $225 million to $255 million, well lower than Wall Street’s expectations for $296 million. Executives also forecast a per-share loss of 90 cents to $1 — far worse than analysts’ average expectations for a nickel of profit for each share.

“Although demand remains strong for FNKO’s inexpensive, unique pop culture offerings, the company was impacted in 4Q22 by retailers pulling back on ordering,” D.A. Davidson analysts said in a note on Monday, adding that it was also suffering from “company-specific operational issues” related to a new distribution center. However, analysts there said the issues were temporary.

 

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