Funko, Inc. (NASDAQ:FNKO) Q2 2022 Earnings Conference Call August 4, 2022 4:30 PM ET

Company Participants

Ben Avenia-Tapper - Director of IR

Andrew Perlmutter - CEO & Director

Jennifer Fall Jung - CFO

Conference Call Participants

Stephanie Wissink - Jefferies

Linda Bolton Weiser - D.A. Davidson

Megan Alexander - JPMorgan

Gerrick Johnson - BMO Capital Markets

Operator

Hello everyone, and welcome to the Funko Reports Second Quarter 2022 Financial Results. My name is Emily, and I will be moderating today's call. [Operator Instructions]

I will now turn the call over to our host, Ben Avenia-Tapper. Please go ahead.

Ben Avenia-Tapper

Thank you, and good afternoon. With us on the call today are Andrew Perlmutter, Chief Executive Officer; and Jennifer Fall Jung, Chief Financial Officer.

Before we begin, I'd like to remind everyone that, during the course of this conference call, management will discuss forecasts, targets, and other forward-looking statements regarding the company and its financial results. While these statements represent our best current judgment about future results and performance as of today, our actual results are subject to many risks and uncertainties that could cause actual results to differ materially from what we expect.

In addition to any risks that, we highlight during the call, important factors that may affect our future results are described in our most recent SEC reports in today's earnings press release. In addition, we will refer to non-GAAP financial measures during the discussion. Reconciliations to their most directly comparable U.S. GAAP financial measures and supplemental financial information can be found in the earnings press release and 8-K that we released earlier today. All of these items, plus a visual presentation that investors can consult to follow along with this discussion are available on our Investor Relations website investor.funko.com.

I will now turn the call over to Andrew.

Andrew Perlmutter

Good afternoon, and thank you for joining us today. I'm excited to report record second quarter net sales of $316 million, a 34% increase over the prior year, capping off the strongest first half net sales in our company's history. Robust demand for our compelling product lineup led to another quarter of broad based strength across brand categories, geographies and channels. The strength of Funko's pop culture platform continues to shine in our second quarter performance.

Net sales for all three of our reported brand categories grew double-digits, with Loungefly more than doubling for second quarter in a row reaching $70 million in net sales for the quarter and $120 million through the first half of the year. Our international business also had the best quarter ever with Europe growing 22% to $63 million.