Collectibles as Fanatics Profit Engine

Collectibles is Fanatics’ profit engine because it owns the product, not just the storefront. In commerce, Fanatics often acts like the operator of the team shop and shares revenue back to leagues. In collectibles, after buying Topps and locking up exclusive card rights, it can design the product, print scarce runs, sell boxes direct, and capture more of the gross profit pool itself.1 2 3

• The revenue mix shows why this matters. In 2024, collectibles were about $1.6B, or 20% of Fanatics revenue, versus $6.2B for commerce. A smaller segment producing the highest margin means it contributes a bigger share of cash than its revenue share suggests.2 3
• Trading cards behave more like branded media and less like apparel. A jersey requires fabric, sizing, inventory depth, and league revenue sharing on retail sales. A hit card release can sell out in limited batches with lower fulfillment complexity and stronger pricing power tied to player demand and scarcity.1 4
• Topps also gives Fanatics a cleaner vertical loop than its core merchandise business. The company has long mixed operating stores with owning brands like WinCraft, Mitchell & Ness, and Topps. Collectibles is the segment where that ownership model is most complete and most economically attractive.1 4

The next step is using collectibles as the wedge for international growth and cross selling. As Fanatics adds more exclusive sports rights and connects cards to live shopping, events, and betting, collectibles is set to become the segment that funds expansion and gives the company its strongest pricing power.1 3