- The stock price of PLBY Group Inc (NASDAQ: PLBY) fell by over 11% intraday today. This is why.
The stock price of PLBY Group Inc (NASDAQ: PLBY) fell by over 11% intraday today.
Why: Q4 results
Q4 results: PLBY Group reported Q4 EPS of ($0.22), $0.06 worse than the analyst estimate of ($0.16). Revenue for the quarter came in at $68.52 million versus the consensus estimate of $75.56 million.
KEY QUOTES:
“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. This restructuring will eliminate a minimum of $15 million 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. Further, it reduces operational complexity by eliminating unprofitable business units and non-core assets.”
“We believe the capital markets prioritize simpler, more profitable business models compared to when we debuted on NASDAQ in 2021. The economic landscape has evolved, and so must we. Our new plan better aligns our achievable goals with our current investor base, who value the efficient use of capital, higher margins, and ample runway to execute our business priorities using less financial leverage.”
- Ben Kohn, Chief Executive Officer of PLBY Group
