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Funko The Best Company In Toy Collectibles Market - Lutz Muller's Idea Of The Month

Mar. 01, 2018 4:46 PM ETFunko, Inc. (FNKO)MAT, HAS10 Comments
Lutz Muller profile picture
Lutz Muller
911 Followers

Summary

  • We have extended our partnership with Cheddar TV to produce a Seeking Alpha 'Idea of the Month' segment with Marketplace authors.
  • SA Marketplace author Lutz Muller continues the series with his idea of the month: Funko.
  • Toy collectibles is a major market that makes $3 billion worldwide. Funko is best positioned in this space - in Q1 Star Wars and Black Panther helped Funko grow about 25%.

This article was written by

Lutz Muller profile picture
911 Followers
Lutz is an acknowledged expert on the toy space. His clients include one of the top three U.S. banks and one of the top three non-public toy companies worldwide. Between 1984 and 2002, Lutz was the CEO at five different manufacturing companies catering to U.S. and international mass retailers. He's lived on five continents and speaks six languages.He started his business intelligence consulting practice in 2003 and he derives his information from three primary sources. The first is his proprietary retailer panel, which includes Wal-Mart, Target, J C Penney, Kohl's, Gamestop, Dollar General, Barnes + Noble and Learning Express. This panel provides him with sell-through data, shelf space changes, inventory levels and other pertinent metrics governing the major companies and products active in the two industry categories. The second is national buyers at 30 leading retailers in 17 large country markets. These provide color on trends and issues that have a bearing on the major manufacturers and products in the two industry categories. The last is mainly Chinese third-party manufacturers who provide insights into supply and inventory issues affecting the major companies or products in the two industry categories.Lutz consults with banks and hedge funds, and hence does not trade in any stocks associated with companies active in the spaces he focuses on. Lutz also is a monthly contributor to Seeking Alpha. He also publishes a monthly Toy Newsletter, which can be found on his website, www.klosterstrading.com.

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Comments (10)

c
Lots of folks think this is just about the vinyls. No way. Checkout all of loungefly. This was an excellent acquisition. Lutz is right. The CEO has fire in his belly! Gonna prove all the naysayers wrong!
Lutz Muller profile picture
thank you for the compliment
j
Lutz this is a fantastic Video ! I agree with your Funko thoughts 1000% thank you !!
Basit Saliu profile picture
Funko should buyout Jakks. Then get into mobile game ASAP.
B
Mattel has the same licences?
Lutz Muller profile picture
night diff,

No, it is Hasbro who has the same licenses - Star Wars, Black Panther etc
Basit Saliu profile picture
Their majority shareholder is Private equity firm ACON Investments.
Basit Saliu profile picture
so they are save.
T
Although I like Funko in the near term, there's still major concern that the fad may be slowing. While they constantly come out with new and exclusive toys, Funko tends to overproduce leaving a lot of revenue on shelves.
T
They need to come up with better marketing and production strategies to optimize. After all, a "collectable" isn't really a collectable if there's too many left on the shelves.
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