Funko, Inc. (FNKO) Reveals Disappointing Financial Results

On February 5, 2020, Funko revealed in its preliminary fourth quarter 2019 financial results that its net sales were expected to decrease by 8% and that the Company would incur a $16.8 million write-down to "dispose of slower moving inventory." On this news Funko's stock price fell $6.20 per share, or 40%, to close at $9.29 per share. One month later, Funko affirmed a decrease of 4% year-over-year in net sales for its fourth quarter 2019 financial results citing "softness at retail during the holiday season which led to a decrease in orders." On this news, Funko's stock price fell over 4% to close at $6.92 per share.