Why did PLBY's Q4 2024 earnings surprise analysts so much?

The Q4 2024 earnings of PLBY Group Inc. were more negative than expected, with a reported EPS of -$0.15, missing the forecast of -$0.11 by $0.04. Here are the reasons for the negative surprise:

|code|Ticker|Name|Date|EPS Surprise|Diluted EPS|market_code|
|---|---|---|---|---|---|---|
|PLBY|PLBY.O|PLBY Group|2024 Q1|-0.15|-0.23|185|
|PLBY|PLBY.O|PLBY Group|2024 Q2|-0.1|-0.23|185|
|PLBY|PLBY.O|PLBY Group|2024 Q3|-0.34|-0.45|185|
|PLBY|PLBY.O|PLBY Group|2024 Q4|-0.04||185|

1. **Weaker Consumer Demand**: The company's Direct-to-Consumer segment, primarily driven by the Honey Birdette brand, saw a decrease in revenue due to a reduction in days on sale and weaker consumer demand. This decline in consumer demand had a significant impact on the company's revenue and profitability.
2. **Termination of Certain Licensing Agreements**: The Licensing segment experienced a decline in revenue due to the termination of certain Chinese licensing agreements and lower consumer demand. The loss of these licensing agreements had a negative effect on the company's revenue stream.
3. **Strategic Transformation**: The company is undergoing a strategic transformation towards an asset-light model, aimed at reducing corporate overhead and enhancing cash flow. These transformations can sometimes lead to short-term disruptions in financial performance, as the company navigates the transition.

In summary, the Q4 2024 earnings of PLBY Group Inc. were more negative than expected due to weaker consumer demand, the termination of certain licensing agreements, and strategic transformation. These factors combined to create a wider-than-expected loss, leading to a negative EPS surprise.