By Ben Glickman
Shares of Funko rose late Thursday after the company said its efforts to overhaul its business were largely complete.
The stock was up 13% to $7.25 in after-hours trading, following a 0.5% rise at Thursday's close. Shares are down 17% since the start of the year.
The Everett, Wash.-based company, which makes pop-culture collectible toys, posted an adjusted profit of 1 cent a share, ahead of the 2 cent loss forecast by analysts polled by FactSet.
Funko's sales fell nearly 13% to $291.2 million, but topped the $282 million forecast by analysts.
Interim Chief Executive Michael Lunsford said the major parts of Funko's plan to cut costs and improve efficiency had been completed. Specifically, the company had reduced inventory, cut out unprofitable product lines and cut down its workforce.
"We believe our company is now on a significantly more solid foundation upon which we intend to build and grow," Lunsford said.
Funko's inventory levels were down by more than half compared to a year ago as of Dec. 31. The company said it paid down $26 million in debt in the fourth quarter and has used proceeds from a games-business transaction to further pay down debt in the first quarter.
The company warned of the impact of a softer content slate and potentially higher shipping costs in 2024, but said it still expects to improve the bottom line in 2024.
Funko's finance and operating chief, Steve Nave, will depart March 15 after just over a year with the company. Nave was brought in as the company reshuffled its leadership team amid an operational overhaul.
Funko expects $1.047 billion to $1.103 billion in sales in 2024, compared with the $1.088 billion forecast by analysts.
Write to Ben Glickman at ben.glickman@wsj.com
(END) Dow Jones Newswires
March 07, 2024 17:50 ET (22:50 GMT)
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