(Filed Under wholesale Lingerie News). Playboy lost $7.699 million on sales of $58.356 million in the third quarter, compared with a profit of $1.266 million on sales of $35.004 million in the same three months last year, as recent acquisitions boosted sales, while profits remain elusive.
CEO Ben Kohn declared, “I’m thrilled to report another successful quarter with a 67% increase in revenue, compared to the prior year, driven by continued strength in both direct-to-consumer and licensing.” Not emphasized was that much of the sales jump over last year’s quarter was not organic, but due to the acquisition of the Lovers chain of 41 stores, completed in March (expected annual sales $45 million), and the acquisition of the Honey Birdette brand and 60 stores, completed in early August (sales of $71 million in the year ended June 30, 2021).
For the first nine months, Playboy lost $21.612 million on sales of $150.887 million, compared to a loss of $4.759 million on sales of $101.335 million in the nine months ended September 30, 2020.
The company noted that the net loss in the third quarter was “largely driven by $9.8 million of non-recurring expenses related to the acquisition of Honey Birdette and ongoing expenses associated with being a newly public company.” It reported “licensing revenue grew 14% year-over-year, to $16.9 million” in the quarter.
Kohn concluded, “We’ve made meaningful progress against the three pillars of our strategic road map: expanding our U.S. direct-to-consumer commerce business, optimizing our licensing partnerships in key territories and categories, and driving new recurring revenue growth initiatives with a focus on innovative digital offerings such as our soon-to-launch creator-led platform, “Centerfold,” and our NFT Rabbitars, which we plan to develop into a membership experience. With the direct-to-consumer infrastructure we’ve put in place over the past year, we are now well-positioned to expand our consumer offerings into membership services to drive significant lifetime value. We’re very excited to soon launch “Centerfold,” our new creator-led platform that will empower the creative and influencer community to interact directly with their fans and build their ownrecurring revenue businesses. Our recent acquisition of the Dream platform, and its technology team, will accelerate our timeline to market, and provide crucial in-house development resources to help us scale quickly.”
For the full year 2020 Playboy lost $5.271 million on sales of $147.662 million, compared to a loss of $23.576 million on sales of 78.110 million. — NM
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