(Filed Under wholesale Lingerie News). According to a revised statement filed with the SEC on March 25, Playboy lost $58.106 million on sales of $95.687 million in the three months ended December 31, compared to a loss of just $512,000 on sales of $46.327 million in the same quarter last year.
For the full year 2021, Playboy lost $77.676 million on sales of $246,586 million, compared to a loss of $5.271 million on sales of $147.662 million in 2020.
During the conference call with analysts, CEO Ben Kohn complained “we believe we could have easily surpassed the $100 million of revenue in Q4, if not for the COVID related fulfillment challenges impacting both Yandy and Playboy Halloween sales and the impact of Honey Birdette, retail store closures in Australia from October into November.”
A major reason for the jump in sales over 2020 were the two acquisitions Playboy made during 2021. In March, the company completed the acquisition of the Lovers chain of stores (which, at the time it said it “expected to generate $45M in revenue over the next twelve months, and approximately $5M of Adjusted EBITDA”). And in August the company completed the acquisition of the Honey Birdette chain of stores (which at the time it said “generated $71 million of revenue and $17.6 million of net income for the twelve months ended June 30, 2021”).
Kohn claimed the company is “well on our way to our goal of $600 million of consumer product revenue in 2025.”
Ashley Kechter, the company’s new president of global consumer goods, added during the call that Playboy expects “revenue in 2022 to be approximately $350 million for the year, that’s roughly 40% growth over 2021. Similar to last year, most of this growth should come from the continued expansion of our direct-to-consumer businesses, along with growth and licensing revenue.”
She added, “our DTC goals are oriented around growth. This means expanding our product line with a newly defined buying process, building out our merchandising function, transforming the customer experience, and strategically expanding our brick and mortar retail presences.”
“We will also continue to focus on growth opportunities in the U.S. and Europe for our owned and operated DTC business with the strategic expansion of Honey Birdette stores and plans to roll out new own and operated consumer Playboy product lines, including cosmetics and lingerie developed by the Honey Birdette team. The timing of those launches is subject to the supply chain and when the necessary inventory is readily available.”
CFO Lance Barton noted in the analyst call that, in 2021, the company “found new ways to tap into the surging demand we see for Playboy branded products. For Halloween, we made the official Playboy bunny costume one of the most iconic and celebrated and recognized costumes in the world, commercially available to the public for the first time ever, it was a huge success, we sold 1000s of units in the first few weeks of the quarter, site conversion rates doubled and we capitalize on all of the organic search traffic occurring for Playboy bunny costume terms, and we were able to meet that demand with supply directly from us.”
He added, presumably referring to Honey Birdette, which currently has eight stores in the U.S., two in the U.K. and 47 in Australia, “our best performing stores globally are already in the U.S., on average outperforming by 40% more revenue per store than we see in Australia, with plans to open at least 10 new stores” in the U.S. this year. The company, in mid February, opened in Miami its eighth U.S. shop.
CEO Kohn added that in addition to the U.S., Honey Birdette will also expand “somewhat in Europe.”
Barton explained that Playboy’s online retailer “Yandy got off to an incredibly strong start in October and was on track for its highest revenue month ever. But unfortunately, we couldn’t keep up with the demand for costumes and had to shut down our Halloween operations a week earlier than anticipated, leading to what we believe was well over $3 million in lost revenue for both Yandy and Playboy. Perhaps most notably at Yandy is the fact that we continue to have a lot of success with our private label Yandy and Playboy products, something that we intend to continue growing this year and beyond.”
Barton added, speaking about 2022, “in terms of a quarterly breakdown of revenue, I expect the first quarter to be approximately $68 million. And I anticipate the back -- the year to be back in weighted with around a third of our full year revenue coming in the fourth quarter. We expect adjusted EBITDA to be around $55 million for the year, with EBITDA margin much lower in the first half of the year as we continue to ramp investments where revenue may lag and come later on. And similar to this year, the bulk of EBITDA should come in the fourth quarter as our revenue ramps.” —NM
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