FNKO - Funko sinks as CEO appointed months ago after earnings miss to step down

2023-07-14 10:24:33 ET

Funko ( NASDAQ: FNKO ) tumbled nearly 18% amid news that its chief executive officer was stepping down, months after he was reappointed following a major earnings miss.

The pop culture lifestyle brand said that Brian Mariotti will leave the post and board member Michael Lunsford will serve as interim CEO. A search for a permanent replacement will include internal and external candidates. Mariotti remains a member of the Funko ( FNKO ) board of directors.

“While I'm going to step away from the day-to-day business to recharge my batteries, I plan to stay active on our board,” Mariotti said in a statement. “I hope to come back and contribute to Funko ( FNKO ) again in new creative ways. I look forward to seeing our team and fans at San Diego Comic-Con next week.”

Mariotti had served as CEO since December, a month after the company reported a big miss on earnings. The company issued a cautious full-year forecast at the time of $1.29B to $1.33B suggesting little to no sequential acceleration and compared to the $1.33B analyst consensus. Truist analyst Michael A. Swartz called the results “head-scratching.”

Mariotti previously served as chief creative officer from January 2022 through December 2022 and as CEO from April 2017 through January 2022. Mariotti also served as CEO of Funko, LLC since he acquired the business with a small group of investors in 2005.

Lunsford previously served as interim CEO for EarthLink and RealNetworks.

Shares of FNKO are down 66% over the past 12 months.

More on Funko:

• Funko, Inc. ( FNKO ) Q1 2023 Earnings Call Transcript
• Funko: Beware Of Rising Debt And Profit Holes
• Funko Dumping Inventory Is A Bad Sign
• Funko CEO Brian Mariotti to step down and take leave of absence

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