Playboy releases disappointing results

Playboy Enterprises, owner and publisher of Playboy magazine, today released disappointing results for the 12 weeks to 30 June while a question mark is raised over its European plans.

Playboy

Playboy has reported a net loss of $8.7m across its entertainment, print and digital and licence businesses. The loss includes a $9.1m restructuring charge because of closing the brand’s New York Office.

Playboy reported a 38% decline in magazine advertising revenues over the period.

The brand’s licensing arm reported revenue down 14%, citing the decline in consumer spending as the cause.

Playboy’s flagship European store in London’s Oxford Street has been closed since the start of the summer due to building maintenance and renovation works according to a Playboy spokeswoman. However a notice revoking the lease on the West End property has appeared this week, sparking further speculation over the future of the brand’s bricks and mortar operation.

The brand opened its first European retail store on Oxford Street in 2007 and it was heralded as the beginning of the company’s European empire. The opening followed stores in Tokyo, New York, Las Vegas, Hong Kong Kuala Lumpur and two in Australia.

At the time Playboy announced plans to open three further fashion stores each year over the course of several years.

The store is operated under licence to Australian based retail licensee Global Designer Brands.

Earlier this year the brand relaunched its online platform as a lifestyle brand as part of a strategy to focus on an ad-funded business model.

Playboy senior vice president of corporate communication, Martha Lindeman, says it expects the London store to reopen. She also confirmed that it plans to open further retail stores in Europe, but no timeframe has yet been set.

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