The news that PLBY Group was going to re-energize its brand, including bringing back its print magazine with a new Playmate of the Year, was met with a negative reaction on Wall Street.
The Westwood-based sexual wellness, style and apparel company – the publisher of Playboy magazine online and Playboy.com – saw a 23% drop in closing prices between Aug. 8 and 9.
It closed at 66 cents on Aug. 15. That represents a decrease in value of 54% from the closing price of $1.43 from Aug. 15 of last year.
The stock has been trading at below $1 a share since May 10, when it closed at 91 cents, putting the company at risk of being delisted. A company can be delisted if its stock trades at less than $1 for more than 30 consecutive days.
On Aug. 8, the company reported after the market closed a net loss of $16.7 million (-23 cents a share) for the quarter ending June 30, compared with a net loss of $132 million (-$1.76) in the same period of the previous year. Revenue decreased by 29% from the second quarter of the prior year to $24.9 million.
Approximately $1.4 million of the revenue decrease was attributable to the Playboy.com e-commerce business no longer being operated by the company this year, which was in addition to a $5 million decline in licensing revenue attributable primarily to the termination of two China licensees late last year. There were also declines at lingerie retailer Honey Birdette and in the company’s legacy digital business, Playboy said in a release.
Relaunching the magazine
The company is also “reintroducing” Playboy magazine. Chief Executive Ben Kohn called it a “quintessential, iconic brand” that “has always been more than a magazine.”
“It is the original creator business that has launched hundreds of careers over the past 70 years,” Kohn said in a statement.
The company’s mission is to “return Playboy to prominence.” Its Playboy Club creators will be integral to that effort, he added.
“We are partnering with them to develop content across all channels, including web, social, commerce, events and the print magazine,” Kohn continued. “The decision to reintroduce Playboy magazine reflects the company’s commitment to adapting to the evolving media landscape while preserving the brand’s rich heritage, including the high-quality journalism, compelling storytelling, and provocative content that has defined Playboy for decades.”
The company announced the return of Playboy magazine with an annual edition to be released in February – its first since 2020, when it ceased publication.
“In conjunction with the magazine, the revival of Playboy’s legendary Playmate franchise will also make its comeback with a worldwide search for the 2024 and 2025 Playmate of the Year and a new class of Playboy Bunnies, who will represent the brand at exclusive events and experiences throughout the year,” it said in the release.
Additionally, the new Playboy.com website launched the week of Aug. 5, featuring an array of unique and exclusive content, the company added.
“The highly anticipated return of these Playboy franchises marks a new chapter in the brand’s storied legacy and celebrates 70 years of (it’s) flagship property,” the company said.
A fully redesigned shop.playboy.com website is expected to launch in October showcasing new and elevated products, the company said.
