2023-03-16 16:30:46 ET
PLBY Group ( NASDAQ: PLBY ) stock slumped after the bell on Thursday after posting a miss on top and bottom lines for the fourth quarter
The Playboy parent posted a $0.22 loss for the quarter, $0.05 wider than anticipated. Meanwhile, a 28.4% drop in revenue from the prior year was $7.13M steeper a slide than the Street had anticipated. An adjusted EBITDA loss of $5.99M also surprised analysts that had expected a $5.01M profit.
“Last year was challenging on a number of fronts. We embarked on a strategic review to restructure and simplify our business. We have reduced leverage and are evolving our strategy to move to a capital light model entirely focused on our most valuable brands, Playboy and Honey Birdette,” CEO Ben Kohn commented. “This restructuring will eliminate a minimum of $15M of costs on an annualized basis. Our new strategy will provide us with a mix of robust cash flow through our licensing segment, significant growth potential through our creator platform, which is growing at 9% week-over-week, and Honey Birdette.”
He added that the restructuring reduces the complexity of the business, which Kohn expects to shore up the stock price in the long term.
“We believe the capital markets prioritize simpler, more profitable business models compared to when we debuted on NASDAQ in 2021,” he said. “The economic landscape has evolved, and so must we.”
Shares of PLBY Group ( PLBY ) nonetheless slipped over 8% in Thursday’s extended trading. The stock has fallen nearly 90% in the past year.
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PLBY Group stock plunges on earnings miss