Playboy (PLBY) is one of America’s most iconic brands. And it came public via SPAC earlier this year. It has endured the meltdown typical of the entire SPAC sector, explains Nick Hodge, editor of Family Office Advantage.
Playboy now trades for less than a $500 million valuation and has sales in many retail channels, including retail. It is also in the crypto and non-fungible token market, selling NFTs of iconic Playboy images.
The brand has new management and is undergoing a turnaround. Playboy continues its buildout. After announcing rapper Cardi B as its founding Creative Director in December, Playboy’s CENTERFOLD platform has now added former adult film actress Mia Khalifa to its ranks.
Playboy says CENTERFOLD “is the new home for the world's top creators to interact directly with their fans, expand their communities and build their own personal content and commerce businesses.”
In addition, the company recently launched Rabbitars — an NFT project called “Rabbitars,” which can be purchased to unlock experiences within the Playboy community. It also has a large e-commerce business in China, and recently acquired high end lingerie retailer Honey Birdette.
The company recently launched an apparel co-branded women’s streetwear collection with X-Girl in Japan. It will have an apparel installation this summer at Showfields Miami. It has a spring/summer 2022 fashion collaboration with rapper Drake’s premium OVO brand that has already exceeded demand expectations. And it just hired Connie Chang, a well-known brand licensing executive that previously worked on several Disney (DIS) properties.
The market loved the shares earlier this year, driving them up to $63.00 last spring when meme stocks and SPACs and crypto were going wild. We’re in a different economic climate now. This is now a ‘blood in the street’ situation.
I’m not buying Playboy as part of the memestock mania. I’m buying it for the cash flow that’s going to come as it monetizes its various platforms, and how it will be valued in a better market environment. Indeed, Playboy continues to execute while hitting new lows. It has several business units that could each justify its current market cap. This stock is a multi-bagger when risk-on sentiment returns.