PLBY Group sales growth strong in 2022, earnings take hit

PLBY Group sales growth strong in 2022, earnings take hit

PLBY Group announced on Friday revenues for the full year 2022 grew 8% to $266.9 million, coinciding with net losses widening for the 12 months ending December 31.

Honey Birdette

The owner of Playboy

Direct-to-consumer segment revenue was $186.6 million for the year, and $48.3 million for the quarter, while annual licensing segment revenue was $60.9 million and $15.5 million for the quarter. Digital segment revenue was $18.7 million for 2022 and $4.6 million for the quarter.

Despite the sales uptick, net loss was $277.7 million in 2022, largely driven by “non-cash asset impairment charges related to the write-down of goodwill, trademarks and other assets of $308.2 million recorded in the third quarter of 2022, said the American company in its earnings update.

“Last year was challenging on a number of fronts. We embarked on a strategic review to restructure and simplify our business. We have reduced leverage and are evolving our strategy to move to a capital light model entirely focused on our most valuable brands, Playboy and Honey Birdette,” said  ​Ben Kohn, chief executive officer of PLBY Group. 

“This restructuring will eliminate a minimum of $15 million of costs on an annualized basis. Our new strategy will provide us with a mix of robust cash flow through our licensing segment, significant growth potential through our creator platform, which is growing at 9% week-over-week, and Honey Birdette. Further, it reduces operational complexity by eliminating unprofitable business units and non-core assets.”

PLBY Group acquired Australian lingerie brand Honey Birdette for $333 million in cash and shares in July 2021, revealing at the time it had big plans to expand the luxury undergarments label, adding it has “potential to become a multi-billion-dollar luxury lifestyle franchise.”

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