Funko CEO Discusses 'Fortnite' Toys With Cramer

Toymaker Funko Inc FNKO, best known for making vinyl figurines and bobbleheads, has a competitive advantage over its peers with its direct exposure to the popular online game "Fortnite," according to company CEO Brian Mariotti.

What Happened

Funko's partnership to make toys based on "Fortnite" was confirmed in late September, and the toymaker happened to be the first company to obtain the rights to do so, Mariotti told CNBC's Jim Cramer Friday.

Being the first to market "Fortnite" toys makes Funko better-positioned ahead of the holiday season than it was in the same period a year ago, as early sell-through "seems very, very positive," he said.

"We're in great position for Q4 and we love what 2019 looks like."

Why It's Important

Despite worldwide demand stemming from the popularity of "Fortnite," Funko could still be impacted by tariffs, as it maintains factories in China.

Yet Mariotti told Cramer he isn't "concerned," as the toymaker is looking at opportunities to open factories outside of China. Tariffs are not the primary decision-making factor for Funko's factory locations, as the company is looking for the "the highest quality, the best price [and] the most consistent production," the CEO said — and this is found outside of China.

What's Next

Through the end of 2019, Funko expects around 70 percent of its total manufacturing to take place outside of China, Mariotti said.

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Screenshot courtesy of Epic Games.