By Connor Hart

Funko suspended its outlook for the year, citing current macroeconomic uncertainty and continuing changes to global tariff policies.

The withdrawal came as the company, which makes pop-culture collectible toys, widened its net loss and logged lower sales in the first quarter. Funko noted that it is gaining share among international customers and outpacing the broader toy industry, while simultaneously taking action to strengthen the foundation of the business.

The Everett, Wash.-based, company on Thursday posted a net loss of $27.6 million, or 52 cents a share, in the March quarter, compared with a loss of $22.7 million, or 45 cents a share, a year earlier.

On an adjusted basis, the company posted a loss of 33 cents a share. Sales fell 12% to $190.7 million.

Chief Executive Cynthia Williams said the company reduced costs and adjusted pricing during the recent quarter in an attempt to combat new tariffs. The company additionally accelerated plans to diversify its supply chain, especially with regard to imports from China.

"We now expect approximately 5% of our future U.S.-bound product to be sourced from China by year-end," she said.

Other toymakers in recent years have taken steps to diversify away from China, where approximately 80% of all toys are manufactured. Despite these efforts, heightened volatility and uncertainty has made it difficult for companies to forecast how consumers will respond to higher prices. This prompted Mattel to similarly scrap its full-year outlook earlier this week.

In after-hours trading shares rose 6% to $4.45. Through Thursday's close the stock has tumbled 69% this year.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

May 08, 2025 17:11 ET (21:11 GMT)

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