I get depressed whenever I read a Playboy Enterprises (NYSE: PLA) earnings report these days (see more of today's earnings news). I mean, sex sells, right? And one has to assume that Playboy has the best brand equity when it comes to selling sex, correct? Apparently not. Playboy's situation seems to be getting worse. The magazine is no longer the cool taboo it once was, the internet is killing it, and subscriptions and newsstand sales are fading. The magazine is arguably the driving heart of the brand. Without it, things will be rough. The numbers tell the tale.
For the second quarter, revenues declined over 14% to $73.4 million. The net loss was 6 cents per share. In the year-ago period, Playboy booked a 6 cents per-share profit. According to Briefing.com, revenue estimates were missed, as were expectations for earnings. In fact, Playboy missed by 11 cents! Not sexy at all.
All of the major operating segments saw declines in their top lines. Licensing increased its operating income by 9%. Publishing, believe it or not, actually narrowed its operating loss. Neither of these two positives is worth much in the grand scheme of things.
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