Australian-born lingerie brand Honey Birdette is continuing its focus on full-price ranging, which has led to a slight dip in sales but a 700 basis point jump in its gross margins.
The brand’s US-based parent company Playboy Inc. reported a direct-to-consumer slip of around US$200,000 to US$16.4 million (~A$25 million) in the third quarter of 2025.
According to Playboy, the decrease was due to a continued focus on full-price products and $400,000 in the third quarter of 2024 that did not recur due to the closing of seven stores at Honey Birdette. Following store closures and the focus on full-price, the brand’s gross margins increased from 54 per cent to 61 per cent.
Comparable store sales were up 22 per cent and full price sales were up 15 per cent in a continued initiative to improve the perception of the brand.
Playboy also makes revenue in licensing, which was up 61 per cent to US$12 million, adding to total revenue for the group of US$29 million, which is down from US$29.4 million in Q3 2024.
Playboy president and CEO Ben Kohn said this is also the third consecutive quarter of growing its adjusted earnings before interest, tax, depreciation and amortisation (EBITDA), which hit US$4.1 million. That is up from a US$600,000 loss in Q3 2024.
“It’s important to note that Q3 adjusted EBITDA was burdened by US$2.5 million of litigation costs, and would’ve been US$6.6 million without such expense,” Kohn said. “Adjusting for one-time revenue items in Q3 2024, revenue would have been up 4.2 per cent for Q3 2025, and high-margin licensing revenue was up 61 per cent year-over-year.
“Even with the impact of our litigation expenses, this quarter was our first quarter since going public to have net income. The improving profitability we have delivered throughout 2025 reflects the hard work our team has put into stabilizing the business.”
The group has also ended the quarter with US$32 million in cash on its balance sheet, with an amended debt facility that extends maturity until May 2028.
“With a healthier balance sheet, and a stable foundation now in place, we are focused on reigniting growth,” he said. “Our strategy centers on three high-potential verticals: licensing, media and experiences, and hospitality. Each is designed to expand Playboy’s global reach while generating recurring, high-margin revenue.
“The momentum we are seeing across initiatives like The Great Playmate Search, the re-launch of our magazine, and the planned Miami Beach membership club, all highlight the strength and versatility of the Playboy brand. We remain highly optimistic about the opportunities ahead for Playboy.”
In early 2024, Kohn shared with the market that Honey Birdette didn’t belong with the company. In late 2024, Playboy listed Honey Birdette as a discontinued operation after many months of attempting to sell the business, and then changed tune in early 2025 by deciding to retain ownership and relist under its operations.