Funko(FNKO)2024-08-09 04:36Financial Data and Key Metrics Changes - For Q2 2024, net sales were 28 million, both exceeding guidance expectations [4][16] - Adjusted net income was 0.10 per diluted share, which was above the guidance range for the quarter [16] Business Line Data and Key Metrics Changes - Sales of Bitty Pop!, a new product line, more than doubled compared to the same quarter last year, contributing positively to overall performance [4] - Direct-to-consumer sales accounted for 23% of gross sales in Q2, up from 18% in the same quarter last year, with a 33% growth in this channel [15][16] Market Data and Key Metrics Changes - The company experienced a pull forward of approximately 1.047 billion and $1.103 billion [18][20] Other Important Information - The company has appointed Yves LePendeven as Chief Financial Officer, who has been with the company for five years and is well-regarded within the industry [15] - The company is focusing on improving its e-commerce experience and customer service as part of its growth strategy [14] Q&A Session Summary Question: What were the biggest surprises in EBITDA for the quarter? - Management highlighted that the net sales exceeded guidance, with a significant portion pulled forward from Q3, and inventory reserve relief contributed to margin favorability [21][22] Question: What needs to happen in Q4 to achieve the low end of the EBITDA guidance? - Management indicated that sales are expected to be weighted more heavily in the second half, and they are monitoring various economic indicators to ensure they meet their guidance [24] Question: How are wholesale channel inventories compared to previous years? - Management noted that retail partners are in a healthy inventory position, typically maintaining 15 to 20 weeks of supply, which is favorable heading into the holiday season [26][27] Question: What are the drivers of growth in Europe compared to the U.S.? - Management explained that the U.S. market faced challenges due to a strategic pullback in mass channel expansion and a weaker content slate, while Europe experienced strong growth driven by evergreen products [33][34]