Financials - Web revenue declines once more for Playboy

E-commerce sales continue to slide for Playboy Enterprises. In Q3 e-commerce revenue and total sales declined by 11.9% and 20.5%, respectively.

Mark Brohan

Research Director

E-commerce sales continue to slide for Playboy Enterprises Inc.

Playboy, which sells online at ShoptheBunny.com and PlayboyStore.com, for the third quarter ended Sept. 30 reported:

E-commerce revenue dropped 11.9% to $9.6 million from $10.9 million.
Total revenue in Q3 declined 20.5% to $56.0 million from $70.4 million in the prior year.
In the third quarter, e-commerce accounted for 17.1% of total sales.
Net loss in the third quarter was $1.1 million compared with a net loss of $6.2 million in the prior year.

“Although the improved third-quarter results demonstrate the significant strides we have made in reducing the cost structure of our mature media businesses, more is needed,” says CEO Scott Flanders. Playboy Enterprises is No. 203 in the Internet Retailer Top 500 Guide, (a PDF version of the company’s financial and operating profile can be ordered by clicking on its name).

For the first three quarters:

E-commerce revenue dropped 26.3% to $27.8 million from $37.7 million.
Total revenue declined 19.1% to $179.8 million from $222.3 million in the prior year.
E-commerce accounted for 15.5% of total sales.
Net loss in the third quarter was $23.5 million compared with a net loss of $13.6 million in the prior year.

In October, Playboy dropped its lawsuit against its third-party e-commerce provider. Playboy withdrew its complaint against eFashion Solutions Inc., which has provided Playboy with e-commerce platform management and other services since 2008, after the two companies reached a settlement. Under the settlement, Playboy received a past due payment of an unspecified amount for royalties from eFashion.