Honey Birdette parent company PLBY Group has sold its Yandy subsidiary for $3 million in a bid to transition into a capital light model.
Last month, the holding company confirmed its subsidiaries Playboy and Honey Birdette are expected to become its core apparel brands. At the same time, it planned an exit from Yandy alongside a strategic incorporation of its sexual wellness brand Lovers into the core business.
Honey Birdette is preparing to open an additional 15 retail locations across the United States by the end of 2024, according to PLBY Group, buoyed by strong results in current 10 stores in the country. It said that its US stores performed better than the 48 Australian stores on various metrics. It also operates three stores in the United Kingdom.
In lifetime customer value, Honey Birdette’s US stores accrued $637 compared to $300 in Australia, with average order value at $231 in the US compared to $135 in Australia.
PLBY added there is potential to transform its US direct-to-consumer Playboy business to a higher-margin joint venture licensing model.
CEO Ben Kohn said the restructure began with a strategic review last year.
“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,” Kohn said. “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.”