Funko, Inc. ("Funko,” or the “Company”) (Nasdaq: FNKO), a leading pop culture lifestyle brand, today reported its consolidated financial results for the fourth quarter and fiscal year ended December 31, 2022. The Company also introduced financial guidance for the first quarter and fiscal year 2023. "During the fourth quarter and in early 2023, we have made progress in addressing operational issues that impacted our results in the second half of 2022. We have strengthened our executive and operational management team and have taken significant steps to improve our operating efficiency. We are gratified that the Funko brands continue to see strong consumer demand from our incredibly loyal and resilient global fanbase, as demonstrated by 37% direct-to-consumer growth and strong sell-through in the fourth quarter," said Brian Mariotti, Chief Executive Officer. "As we move forward, we remain laser focused with a high sense of urgency to build an operating foundation to support the
From their Press release:
"Inventory at year-end totaled $246.4 million, an increase of 48% compared to a year ago. This includes inventory that the Company intends to eliminate in the first half of 2023 to reduce fulfillment costs by managing inventory levels to align with the operating capacity of our distribution center. This is expected to result in a write down in the first half of 2023 of approximately $30 to $36 million. "
The previous awful company I worked for was rabid about maintaining inventory. I really don't understand why it matters but they would literally just throw raw materials away at the end of the fiscal year to make whatever stupid numbers looked good on their fiscal report, then we'd struggle for months with raw material shortages.
Another fun inventory-related phenomenon was having to order, receive, test, and store 10 kg of a raw material every single fucking week instead of just doing all of that one time with a single 500 kg order for the whole year because again, "it looks better". They will tend to completely ignore lost productivity if the employees involved in a process are salaried, it's just implied that they will work extra hours if necessary because fuck you. This shit happens because some brain genius big wig decides that their method for measuring a certain money number is the best way and anyone who questions it will be fired or ostracized.
The previous awful company I worked for was rabid about maintaining inventory. I really don't understand why it matters but they would literally just throw raw materials away at the end of the fiscal year to make whatever stupid numbers looked good on their fiscal report, then we'd struggle for months with raw material shortages.
Another fun inventory-related phenomenon was having to order, receive, test, and store 10 kg of a raw material every single fucking week instead of just doing all of that one time with a single 500 kg order for the whole year because again, "it looks better". They will tend to completely ignore lost productivity if the employees involved in a process are salaried, it's just implied that they will work extra hours if necessary because fuck you. This shit happens because some brain genius big wig decides that their method for measuring a certain money number is the best way and anyone who questions it will be fired or ostracized.