Australian-born lingerie retailer Honey Birdette has been hit with a 21 per cent fall in revenue for the second quarter of 2024.
The brand’s US-based parent company PLBY Group confirmed the news in a trading update, noting that the US$3.8 million (A$5.77 million) fall in revenue for the lingerie brand was largely due to a 50 per cent reduction in the number of days on sale as the company focuses on brand health and gross margin.
Honey Birdette’s fall in revenue added to an overall direct-to-consumer plummet across the PLBY Group of 26 per cent to US$14.5 million, with total revenue across the business down by around US$10 million, or 29 per cent.
The group also reported a US$2.9 million loss in adjusted earnings before interest, tax, depreciation and amortisation for the second quarter. This reflected a US$4.9 million decrease in licensing EBITDA due largely to two contracts terminated in China in late 2023, as well as a US$0.7 million decline in Honey Birdette EBITDA, partially offset by a US$1.9 million reduction in corporate expense and a US$1.3 million Playboy.com EBITDA loss in the prior year period that did not recur.
Alongside Honey Birdette, the group’s core brand is Playboy, which PLBY has shifted all its focus to in 2024 since selling off most of its retail assets last year, bar the Australian lingerie brand. PLBY Group CEO Ben Kohn confirmed earlier this year that the group will sell off the lingerie brand when the timing is right.
As for the Playboy brand, PLBY broke the news today that it is relaunching the Playboy magazine in 2025, which will be matched with a new website that launched this week, as well as an ongoing reversion back into licensing.
“We have taken significant steps to position Playboy for future success, aimed at strengthening our balance sheet and enhancing our operations,” Kohn said. “Our senior lenders have agreed to give us an exclusive period of time to repay all of the debt at a significant discount, which would meaningfully reduce total company leverage.
“To accomplish this, we have engaged a leading investment bank to help secure new financing.”