By Ben Glickman
Funko named former Hasbro executive Cynthia Williams as its next chief executive, effective later this month, as the company pushes to return to growth following another quarter of falling sales.
Williams, 57, served as president of Hasbro's Wizards of the Coast and Digital Gaming unit until she resigned last month. She took over the business, which accounts for about half of the toymaker's annual revenue, after Chris Cocks ascended to the CEO role.
Everett, Wash.-based Funko, which makes pop-culture collectible toys, said that Michael Lunsford would continue to serve as interim CEO until Williams joins May 20. Williams is also expected to join the board.
The company has been without a permanent CEO since July, when Brian Mariotti stepped down. He later also resigned from the board.
Funko shares, which are down about 12% this year as of Thursday's close, rose nearly 14% after-hours following the news.
Before joining Hasbro, Williams worked at Microsoft in the gaming segment. She has also held roles at Amazon.
Williams said in a statement that her experience with various fandoms would help her develop products that appeal to Funko's varied customer base of fans and collectors.
Funko said in a regulatory filing that Williams would receive an annual base salary of $1 million and would be eligible for an annual bonus of up to 200% her salary.
Funko's sales fell below Wall Street's expectations in the first quarter, dropping 14% compared to a year earlier. The company said revenue from its core collectible line, which are sold under the Funko Pop brand name, and its Loungefly backpacks both fell in the double digits.
The company is looking to boost sales as the broader toy industry struggles. Toymakers last year grappled with a drop in sales as consumers bought fewer toys and games after a surge during the pandemic.
Funko posted a loss of $22.7 million, or 45 cents a share, in the quarter, compared with a loss of $55.3 million, or $1.17 a share, a year earlier. Analysts polled by FactSet were expecting a per-share loss of 37 cents. Funko has now reported a loss in six consecutive quarters.
Stripping out certain one-time items, the company forecast a loss of 8 cents to 15 cents a share in the second quarter, which was narrower than analysts expected.
Write to Ben Glickman at ben.glickman@wsj.com
(END) Dow Jones Newswires
May 09, 2024 17:57 ET (21:57 GMT)
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