In its second-largest acquisition, Amazon buys the company for $970 million.
In the quarter ended Sept. 30, web sales for Playboy dropped 29.2% to $10.9 million from $15.4 million in Q3 of 2007. The web accounted for 15% of total revenue.
E-commerce revenue declined for Playboy Enterprises Inc. in the third quarter.
In the quarter ended Sept. 30, web sales for Playboy, No. 387 in the Internet Retailer Top 500 Guide, dropped by 29.2% to $10.9 million from $15.4 million in the third quarter of 2007. The web accounted for 15% of total revenue.
Overall Playboy in Q3 posted a net loss of $5.2 million on sales of $70.4 million, compared with net income of $2.6 million on sales of $82.8 million in the prior year. “Our focus on content creation has enabled us to reduce our cost structure,” says CEO Christie Hefner. “We have begun implementing approximately $12 million in annual expense reductions, which include lowering our head count, outsourcing functions and exiting unprofitable businesses.”
For the first three quarters of the year, Playboy recorded web sales of $37.7 million, a decrease of 17.9% from web sales of $45.9 million in the previous year. Overall in the first three quarters, Playboy posted a net loss of $10.4 million on sales of $222.3 million vs. net income of $6 million on sales of $253.9 million.