Latest news with #MikeLunsford
Geek Wire
6 days ago
- Business
- Geek Wire
Funko names Netflix vet as new CEO a week after pop culture collectibles maker reported $41M loss
Newly named Funko CEO Josh Simon. (Funko Photo) Everett, Wash.-based Funko, makers of pop culture collectibles, named Josh Simon as the company's new CEO. The move comes on the heels of rough second-quarter earnings in which the company reported a $41 million loss. Simon replaces interim CEO Mike Lunsford, who took the helm last month when Funko's board of directors moved on from the short tenure of Cynthia Williams, who was hired from Wizards of the Coast in May 2024. Simon spent more than five years at Netflix as vice president for consumer products, overseeing the streaming network's merchandise business, live experiences, and the Roald Dahl Story Company. He built and scaled the division and created a broad range of products for Netflix's biggest titles, such as 'Stranger Things,' 'Bridgerton,' 'Squid Game' and more. Simon also launched Netflix's first e-commerce platform for consumer products and managed relationships with retailers including Walmart, Target, and others. Prior to Netflix, Simon held several senior management roles at Nike, most recently as the vice president and head of global strategy for product, design, and merchandising categories. A Harvard University graduate, Simon also spent more than six years at The Walt Disney Company. 'Josh is an exceptional leader and his extensive experience in entertainment and consumer products is exactly what Funko needs in its next CEO,' said Charles Denson, chairman of the board of Funko, in a news release. The change in leadership comes as Funko, makers of its signature Pop! figurines, reported difficult financial news last week. After a 22% drop in sales during the second quarter, Funko has now lost $61 million in the first six months of 2025, more than four times its $14.7 million loss in all of 2024, the Daily Herald reported. The company's last profit was in the second quarter of 2024 when it earned $5.4 million. 'As expected, our 2025 second quarter performance was impacted by a dynamic and uncertain tariff environment,' Lunsford said in a statement. 'Looking ahead, we expect headwinds to moderate and our business to improve as a result of the actions we've taken to cut costs, diversify product sourcing and adjust prices.' Lunsford said during a conference call on Friday that a workforce reduction of approximately 20% was among cost-cutting measures. The company's headquarters and flagship retail store are located in downtown Everett, north of Seattle. In 2022, it closed warehouses in Washington state to consolidate distribution work in Arizona. Before briefly replacing Williams last month, Lunsford was also interim CEO between 2023 and 2024 when he took over for former CEO Brian Mariotti. Simon's new role is effective Sept. 1, and he'll join Funko's board of directors.
Newsweek
6 days ago
- Business
- Newsweek
Funko Pops Are Getting More Expensive Under Trump
Produced [by our journalists] with financial support from an organization or individual that did not approve or review the work. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Funko, the company behind the collectible POP! figurines, have increased prices this year, attributing this—and its broader financial struggles—to the trade policies of the Donald Trump administration. Funko announced earlier this year that, starting in July, it would be increasing the retail price of its flagship POP! dolls to $14.99. This compares to $11.99 in 2024, according to online collectibles store Boxed Vinyl. Funko said that this was in part due to "rising tariffs" which had "significantly" pushed up its costs. Last week, the company posted a weak set of results for the second quarter, again blaming these price adjustments, as well as its decision to cut around 20 percent of its workforce, on the tariffs. Newsweek has reached out to Funko via email for further comment, and to the U.S. Department of Commerce for a response. Why It Matters While rising tariffs on the majority of America's trading partners promise to reshape most aspects of the economy, toymakers in particular are expected to feel an outsize impact given the industry's reliance on imports from China. Many major brands besides Funko—including Hasbro and Barbie-maker Mattel—warned earlier this year that they would need to raise toy prices to mitigate these effects. The 90-day trade truce agreed between the U.S. and China in May, and extended again this week, eased some of these concerns, but industry representatives remain fearful of the impacts. What To Know Last week, Funko reported $193.5 million in sales for the second quarter which ended June 30, marking a 22 percent decline from $247.7 in the comparable period of 2024. During the quarter, which interim CEO Mike Lunsford said was "impacted by a dynamic and uncertain tariff environment," Funko also swung to a net loss of $41 million from a $5.4 million net income last year. In a subsequent earnings call, Chief Financial Officer Yves LePendeven said that tariffs had led to a pause in U.S.-bound orders from China, which in turn disrupted second-quarter sales. Funko Pop! vinyl figures are displayed during ToyCon at the Eastside Cannery Casino Hotel on March 13, 2020 in Las Vegas, Nevada. Funko Pop! vinyl figures are displayed during ToyCon at the Eastside Cannery Casino Hotel on March 13, 2020 in Las Vegas, said that the company had "moved quickly" during the quarter to minimize the impact of tariffs. These efforts included the price increases, a "workforce reduction of approximately 20 percent," and efforts to shift more of its production out of China and into Vietnam and other sourcing countries. Having fully implemented the price increases and returned to ordinary shipping schedules, LePendeven said the company expects "to fully offset the financial impact of incremental tariffs within the current year." However, he added that "continuing uncertainty around global tariff policies" made it challenging to provide a concrete financial forecast for the remainder of 2025. According to recent analysis by economic research firm John Dunham & Associates, published by The Toy Association last week, toy imports have declined significantly this year. Total imports fell 31 percent year-over-year in June, driven by a 47 percent drop in Chinese shipments. The Toy Association, a trade organization representing U.S. toymakers, said the figures "raise concerns about potential product shortages later in the year if the trend continues." What People Are Saying Mike Lunsford, Interim CEO at Funko, said: "Looking ahead, we expect headwinds to moderate and our business to improve as a result of the actions we've taken to cut costs, diversify product sourcing and adjust prices. The team is focused on stabilizing the business, accelerating execution on growth initiatives and unlocking Funko's long-term potential." Kathrin Belliveau, chief policy officer at The Toy Association, said this week: "Tariffs are creating serious headwinds for the toy industry and are disrupting the flow of toys into the U.S. market ahead of the crucial holiday season. Tariffs don't just affect companies; they ultimately impact the choices and prices American families face. Without relief, we risk seeing fewer products on store shelves, higher costs for families, and lasting strain on the businesses that bring play to children." What Happens Next? While Funko said that ongoing changes in the trading environment make providing a formal outlook challenging, it expects its financial performance in the second half of the year to mark an improvement compared to the first six months. However, it still expects net sales to decline by "high single-digits" compared with the second half of 2024. U.S. toy sales were solid in the first half of 2025, according to market research firm Circana, with dollar sales up by 6 percent year-over-year and units sold up 3 percent. The toy industry is showing strength during this period as consumers are holding their breath and waiting for higher prices to kick in," said Juli Lennett, vice president and industry adviser for Circana's toy division. "This resilience is especially important as we set our sights on the holiday season and what categories are critical for the consumer to bring joy to their loved ones."
Bloomberg
7 days ago
- Business
- Bloomberg
Funko Names Netflix Executive to Lead the Toymaker's Turnaround
Funko Inc., the struggling maker of pop-culture figurines, named Netflix executive Josh Simon as its new chief executive officer. Simon, who oversees consumer products at Netflix, will take over on Sept. 1 and join the company's board, Funko said Tuesday in a statement. He succeeds interim chief Mike Lunsford.
