Funko replaces CEO after one year amid losses, falling sales

[NEW YORK] Toymaker Funko replaced chief executive officer Cynthia Williams after just one year on the job, naming board member and former CEO Michael Lunsford as interim head to reverse the company’s slumping fortunes.

“We believe a change in leadership is necessary to deliver full shareholder value and believe Mike’s appointment positions us accordingly,” the Everett, Washington-based company said.

Shares of Funko have dropped more than 50 per cent in the past year. Recruited from Hasbro, Williams narrowed annual losses at the company, which is known for big-headed pop-culture figurines from brands such as the Power Rangers.

Revenue, however, has fallen for two straight years after a surge during the pandemic and is poised to slip again in 2025. In 2022, Hollywood moguls Peter Chernin and Bob Iger invested US$263 million in the company.

“I believe we have yet to achieve the full potential of Funko,” Lunsford said. He served as interim-CEO prior to Williams’ appointment.

Tariffs and the rising price of materials led Funko in May to raise the suggested price of its basic Pop! figure to US$15 from US$12.

“The recent changes to the global business environment have constrained our growth initiatives, and we intend to first address those challenges but always with an eye towards the long-term growth of the business,” Lunsford said.

Williams was previously in charge of Hasbro’s Wizards of the Coast division, which makes Magic: The Gathering and Dungeons & Dragons. She did not immediately respond to a request for comment.

Shares of Funko tumbled as much as 11 per cent to US$4.33 in New York. BLOOMBERG