At least $30 million worth of Funko POP! vinyl figures will soon find their way into landfills as demand for the pop-culture collectibles dip.
In a new press release, Funko has confirmed that within the first half of 2023, they’ll “reduce fulfillment costs by managing inventory levels,” which will “eliminate” $30 million to $36 million worth of the POP! vinyl figures.
During a recent earnings call, the company stated that at the end of 2022, inventory totaled $246.4 million, up a staggering 48% from 2021, with Funko’s chief operating officer Steve Nave confirming that the oldest inventory will be destroyed first, elaborating, “inventory that we felt like we could sell over time, but due to the operational constraints, it’s just better to get out of it.”
In the fall of 2022, Funko did report on many popular chains delaying or entirely canceling orders, in addition to their new consolidated fulfillment center not operating as smoothly as possible, leading to inventory in Q3 being worth $265.8 million, up 89% from $140.8 million at the end of Q3 2021.
With recent developments affecting both older and slower-moving lines, over the last several weeks, we here at Ghostbusters News have received a noticeable increase in fans reaching out, informing us that some of the larger scaled online toy retailers have begun canceling planned re-stocks of withstanding pre-orders, in particular, the 2019 Ghostbusters assortment, released in celebration of the franchise’s 35th anniversary.
Seeing a loss of $46.7 million within Q4 of 2022, a statement from the pop-culture giants reported that seasonal sales within the United States were down by 4.7% from the previous quarter; that said, company-wide sales were only down 1%. The full year does present a slightly more favorable outlook, showing sales up 29% to $1.3 billion from $1.0 billion in 2021. Still, due to added manufacturing, cost, and, again, tons of overstock, the company saw a net decrease of $5.2 million.