$PLBY Earnings:
- Total revenue from continuing operations in the fourth quarter was $39.4 million versus $44.9 million in the prior year period, reflecting a year-over-year decrease of 12%. Of the $5.5 million decrease in revenue, $6.8 million was attributable to the elimination of
playboy.com e-commerce, as well as a decline in licensing, partially offset by growth in Honey Birdette and the digital business.
- Net loss from continuing operations in the fourth quarter was $9.6 million, including $8.3 million of trademark and other impairments. The adjusted EBITDA income from continuing operations was $1.1 million.
- Direct-to-consumer revenue from continuing operations declined $4.3 million, or 18%, year-over-year to $20.4 million in the fourth quarter of 2023. Revenues from
playboy.com e-commerce declined by $6.8 million, as the Company completed the transition from an owned-and-operated model to a licensing model. Also, during the quarter, revenue from Honey Birdette increased by $2.5 million, or 14% year-over-year, to $20.4 million from $17.9 million due to improvement in consumer demand.
“In 2023, we worked on five main goals. First, restructure the Company and move to a capital-light business model; second, reduce overhead; third, stabilize and reposition Honey Birdette back to a premium brand; fourth, move our China business to a JV model with better accountability and control; and fifth, grow our creator platform, the Playboy Club. We made major progress on all five goals in 2023.
As part of our restructuring, we sold Yandy and Lovers, two businesses that were not core to our future plans. We also organized our art and furniture collection for auction, signed contracts with two auction houses, completed one successful sale in November of fine art and plan to have two other, larger auctions in 2024, which we expect will result in the sale of a majority of our collection. We also successfully outsourced operation of our e-commerce business, eliminating approximately $11 million of direct losses, as incurred in the full year of 2022.
We have significantly reduced our corporate overhead from approximately $50 million for the full year of 2022, to this year’s projected corporate overhead of approximately $27 million. We remain burdened by long-term fixed overhead costs, such as our corporate office lease that was signed before COVID, but we are actively working to reduce overhead where we can."
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