The online apparel retailer’s filing for Chapter 11 bankruptcy protection has drawn several potential suitors, including rapper West and music executive Damon Dash, Karmaloop ...
Playboy Enterprises Inc. is looking at $10 million more in cost cutting in the wake of declining sales. For the second quarter e-commerce revenue declined by 21.6%, while total sales dropped by 14.4%.
Playboy Enterprises Inc. is looking at more cost cutting in the wake of declining sales, including e-commerce.
For the second quarter ended June 30, e-commerce revenue for Playboy declined by 21.6% to $11.6 million from $14.8 million in the prior year. Overall, Playboy, No. 387 in the Internet Retailer Top 500 Guide, posted a net loss of $2.1 million on revenue of $73.4 million vs. net income of $1.9 million on sales of $85.7 million in the second quarter of the prior year. "Traditional media is facing a secular shift, and advertisers are migrating to new platforms,” says Playboy CEO Christie Hefner. “This has created a challenging environment for our print and TV businesses.”
For the first two quarters, e-commerce revenue for Playboy, which operates Playboystore.com and Shopthebunny.com, declined by 12.1% to $26.8 million from $30.5 million in the same period in 2007. Playboy also recorded a net loss of $5.2 million on total sales of $151.9 million vs. net income of $3.4 million on sales of $171.1 million in the prior year. "2008 has been and will remain a difficult year,” says Hefner. “Through the first half of this year, we have reduced expenses by nearly $5 million and we have further identified a total of approximately $10 million in annualized cost savings.”
Playboy took a $600,000 restructuring charge in the first quarter, which it attributed mainly to outsourcing its e-commerce operations to eFashionSolutions LLC.