PLBY Group, Inc. (NASDAQ:PLBY) Q3 2023 Earnings Call Transcript

Ben Kohn: Thanks, Greg. Yes. Look, I think October is a great example, and we talked about this, but in October of ’23 versus October of ’22, which is a month that we had no sales in either year. We were up 16% year-over-year. And so with the right product, we are easily seeing the demand for that. We’ve also made changes already to expedited shipping, to free shipping thresholds. We have not seen any impact to consumer demand for the product. And we believe that we have room to raise prices. Obviously, labor and other costs have gone up. And when you look at the competitive landscape, we’ve seen others raise prices. We have not, and so that is something that we will start implementing here in the fourth quarter. And just given how we tag items based on the factories, it will take us until the second quarter to have that across our full product suite.

Greg Pendy: Great. And then just one more on Honey Birdette. Can you just remind us what the store base sits at right now, where it was last year and if there are any plans for new stores?

Marc Crossman: So Greg, it’s Marc. Right now, the store base has got 48 in Australia. We’ve got 12 in the U.S., and we have three in the U.K. And since then, we had opened, I think, a year ago, three new stores. I’ll get the exact number for you, but I think that was in the U.S.

Ben Kohn: Greg, I think we would like to open new stores. I think that we are committed to becoming a capital light – to moving to that capital-light model we talked about. We don’t think that’s the best use of shareholder capital on our balance sheet just given our limited resources and the debt that we have, but we are exploring, as we said, strategic alternatives to potentially bring in a partner to help us expand that business. It’s just not the right time for us to sell 100% of it after consulting with our advisers based on the macro environment.

Greg Pendy: Makes sense. Okay. Thanks a lot.

Operator: And we have reached the end of the question-and-answer session. Therefore, I’ll turn the call back over to the management for closing remarks.

Ben Kohn: We appreciate everyone listening, and we look forward to talking to you on our next call to discuss full year 2023 results. Thank you.

Operator: And this concludes today’s conference, and you may disconnect your lines at this time. Thank you for your participation.