Honey Birdette has commenced scaling its operations under PLBY Group, with new store openings and product expansion through its subsidiaries.
The Australian intimate apparel retailer was acquired by PLBY for $333 million in 2021, following an acquisition spree by the US-based media and lifestyle company. In 2019, PLBY acquired luxury lingerie brand Yandy and sexual wellness brand Lovers the following year.
Honey Birdette merchandise has now expanded through these subsidiaries, with its range of sexual wellness products added to Lovers' 41 stores across the United States.
PLBY Group CEO Ben Kohn said the integration has already been a success.
"We'll continue to replace third-party products with higher margin owned and operated inventory."
In the long term, Kohn expects to see Playboy integrated into or replacing Lovers as a brand. PLBY global president of consumer products Ashley Kechter confirmed that some Lovers stores are being rebranded as 'Playboy Pleasure' stores.
"That will enable us to continue to sell the strong merchandise we have through the Lovers brand, and to exponentially add the Honey Birdette product that we're seeing success in, as well as rolling out a much bigger expression of our Playboy Pleasure product," Kechter said.
"We're going to start with the Playboy Pleasure line and then lead into additional store opportunities that we will either rebrand or integrate into the Lovers business that exists today."
Since its acquisition, Honey Birdette has also increased its store portfolio, adding four locations in the US and an additional site in the United Kingdom, totalling 11 and three stores respectively. The company's largest physical portfolio is in Australia, with 46 stores in operation across the country.
PLBY chief financial officer Lance Barton said the new openings are part of a broader rollout for the brand. It comes as Honey Birdette recorded 34% year-on-year growth in revenue over Q3 2022 to US$21 million.
"We've also signed the lease in Boca Raton, Florida with plans to open next summer (June/September 2023), and are working to land additional suitable locations in the U.S. and Europe," Barton said.
Honey Birdette's recent store launch in Los Angeles has also prompted vertical growth across the group, with Playboy opening its first pop-up store in October last year. While this was the first physical store for the brand, which is sold online and licensed to distributors, Kohn confirmed its first few weeks of revenue were comparable to the average Honey Birdette store in the US.
"We are excited to test this elevated mall-based pop up as a prototype for permanent brick and mortar locations targeting the Playboy consumer. The space features rotating iconic Playboy favorites, brand collaborations and seasonal lines, and we are encouraged by its early success."
Kohn said the current margin for Playboy's new pop up location is also seven percentage points higher than Playboy's e-commerce margin.
"We expect that to increase as we incorporate more of our owned and operated merchandise into the store."
Honey Birdette has already commenced expanding its merchandise offering, launching a new basics category this year.
The basics range is pitched at a more accessible price point and includes its latest sheer-style Nakeds collection, alongside a microfibre Essentials collection and a leatherette capsule called Emily.
The launch was led by Kechter, who was hired in January 2022, and Honey Birdette global director of product and marketing Francesca Anderson.
Anderson cited consumer demand as the primary reason to diversify its product assortment.
“It was not necessarily from the price point of view, but it was definitely something our existing customers were asking from us,” she says. “While we've always been known as a luxury lingerie brand, and our existing customers absolutely love the brand, they were obviously shopping elsewhere if they did want a basic range within their wardrobe.
“We didn't want them to shop elsewhere; we wanted to also offer that within the brand.”
As well as driving higher average spend per customer, Anderson said the new range would attract new customers with its entry level pricing. Products within the latest Nakeds range include a $40 g-string, a $70 bralette, a $100 bodysuit, and a $120 waspie corset.
The Essentials collection starts from $45 for a thong to a $165 corset set, while Emily prices start at an $80 Nero thong to a $400 leather dress.
Kohn confirmed the collection as the best release of the year, attracting a new audience to Honey Birdette.
"In its first week, 22% of the Essential sales were to customers who were new to the brand," Kohn says. "We will continue to invest and diversify in the product, so as to expand our addressable market."
Anderson said the basics category would continue to expand in 2023.
“The range now is our foot-in-the-door, but we've got some really exciting things that are planned for 2023.”