Luxury skiwear and lifestyle brand Perfect Moment, Ltd. reported that total net revenue for the fiscal second quarter increased 75 percent from the first quarter to $3.8 million and declined 35 percent year-over-year from $5.9 million in the prior-year second quarter. The UK-based company said the decline from the prior year was due primarily to the decrease in collaboration revenue partially offset by an increase in e-commerce net revenue.

  • E-commerce gross revenue increased 27 percent to $1.7 million, with e-commerce net revenue up 8 percent to $1.1 million. The increase in eCommerce net revenue was attributed to enhanced brand awareness.
  • Wholesale net revenue decreased 4 percent year-over-year to $2.7 million, compared to $2.8 million in the year-ago quarter, driven by timing differences in shipping.
  • Collaborations revenue declined by $2 million due to the conclusion of a two-year collaboration with Hugo Boss that ended in fiscal year 2024.
  • Excluding the Hugo Boss collaboration revenue, total net revenue was flat year-over-year at $3.8 million in the fiscal second quarter.

Since fiscal year 2020, the company’s fiscal second-quarter revenue averaged approximately 12 percent of the fiscal year’s total revenue, with the fiscal first half averaging only 15 percent of total annual revenue.

Income Statement Summary
Gross profit decreased 37 percent to $2.1 million from $3.3 million in the year-ago quarter, and gross margin was 54 percent compared to 55.7 percent in the year-ago period. The decrease was driven by lower sales that is primarily attributed to the collaboration with Hugo Boss that concluded in fiscal year 2024.

The decrease in gross margin is attributed to the continuation of an end-of-season sale for autumn/winter 2023 that included an unusually high percentage of products sold at a discount. This made way for a significant new collection, replacing many product lines in AW24. The decrease in gross margin was also due to a greater percentage of lower-margin eCommerce sales versus higher-margin wholesale sales.

Total operating expenses increased 29 percent to $4.6 million from $3.6 million in the year-ago quarter. The increase was primarily due to increased SG&A expenses, partially offset by decreased marketing and advertising expenses.

Net loss was $2.7 million or a loss of 17 cents per basic and diluted share, compared to a net loss of $0.8 million or a loss of 29 cents per basic and diluted share in the year-ago Q2 period.

Adjusted EBITDA was negative $2.0 million, compared to negative $958,000 in the year-ago quarter. The decrease was primarily attributed to the conclusion of a two-year collaboration with Hugo Boss that ended in fiscal 2024. The decrease was also due to increased SG&A, partially offset by lower marketing and advertising expenses.

Balance Sheet Summary

Cash, cash equivalents and restricted cash totaled $2.6 million at September 30, 2024, compared to $4.0 million at June 30, 2024. The decrease was primarily due to increased cash used in operating activities.

Marketing & Brand Highlights

  • Perfect Moment’s following on social media platforms, including Instagram, Facebook and TikTok, reached 388,000, up 19.2 percent from the same year-ago quarter.
  • The social audience reached by content posted by global key opinion leaders (KOLs) about Perfect Moment totaled over 203 million in fiscal Q2, representing the total combined followers of the celebrities, influencers, models, media publications, and fashion industry notables who organically posted about the brand during the quarter. Notable highlights include Instagram posts by Priyanka Chopra Jonas (92.1 million followers) and Nick Jonas (35.4 million followers) wearing and tagging @perfectmomentsports. Nina Dobrev also posted wearing Perfect Moment to her stories for her 26.2 million followers and an Instagram story by Jasmine Tookes tagging @perfectmomentsports for her 7.5 million followers.
  • Global media coverage during the quarter included an exclusive Women’s Wear Daily published on the new Soho store opening and coverage in ELLE, Vogue Scandinavia, Vogue India, The Standard, Hello! Magazine, Fashion Network, and Fashion United.
  • Total unique global visitors per month (UVPM) reached over 1.2 billion in Q2; this is the combined sum of UVPM reached by all global digital media coverage achieved during the quarter.

Management Commentary
“In fiscal Q2, we grew our e-commerce business as we further expanded brand awareness and improved our supply chain operations,” stated Perfect Moment CEO Mark Buckley. “In a challenging market we delivered strong growth in eCommerce while implementing more effective strategies that lowered our marketing expenses by 21 percent versus the same year-ago quarter.

“Our e-commerce growth during the quarter was offset by a decrease in revenue from a collaboration with Hugo Boss that concluded in fiscal year 2024. However, this allowed us to focus on long-term sustainable growth, and our wholesale revenue, which excludes Hugo Boss, was relatively consistent in the quarter.

“We continue to strategically expand our wholesale network and deepen the associated relationships to enable greater future wholesale growth. We welcomed Rosela Mitropoulos to Perfect Moment in the new position of head of business development. She will accelerate our sustainable growth plans, building upon our now stronger foundation.

“To drive brand awareness, in October, we went live with our Johnnie Walker Blue Label Ice Chalet campaign in collaboration with Diageo. This well-received ongoing campaign embodies our collective vision of a premium, world-class après-ski experience that blends luxury with excellence in performance on every level.

“We’ve now begun the next phase of the campaign, inspired by how our Ice Chalet-themed celebrations have greatly broadened the awareness of our brands worldwide. Our partnerships with Priyanka Chopra Jonas and Johnnie Walker enable us to deliver high-energy, impactful experiences that resonate with our customers worldwide.

“We’ve invested across all parts of our website, including better photography of our products, which is starting to see improved results. For example, as of last week, we reached the #1 spot for organic search on the keyword’ ski knits.’ Our organic traffic sessions have also increased, up more than 134 percent in the fiscal second quarter of 2025 versus the same year-ago quarter.

“We are now at the beginning of our main season, with snowfall making ground and our marketing attention turning to brand activations and content creation trips across resorts globally.

“After achieving strong market expansion through our high-end retailer and eCommerce channels, we opened our first seasonal store in the SoHo neighborhood of New York City. We also opened in October our first seasonal location in Bicester Village in the U.K. These physical stores will help drive brand awareness and customer acquisition, as well as provide an event space for hosting events that build our Perfect Moment community. We continue to explore other seasonal locations with the goal of opening year-round stores.

“Improving our gross margins remains an important focus. We anticipate our gross margins in our current fiscal year 2025 to improve substantially year-over-year with the significant progress we’ve made across all our margin expansion projects. One most recent project includes opening our first U.S. distribution center last month. Following the facility opening, we realized an immediate improvement in operating efficiency. We also expect it to reduce duty costs for eCommerce orders in the second half of this fiscal year, with this helping to drive improved gross margins compared to last year.

“We also see our new U.S. distribution center improving our customer experience while reducing our outbound and return shipping cost for the U.S. market—a market which represented more than 40 percent of our revenue in our last fiscal year. In fiscal 2025, all of our U.S. eCommerce revenue will flow through this new distribution center, with our U.S. wholesale revenue running through it in fiscal year 2026.

“We are reviewing our European distribution strategy to improve margins in the fiscal year 2026, which represented more than 30 percent of our revenue in our last fiscal year.

“While we will remain focused on accelerating our online sales growth and expanding our direct-to-consumer channel, we will also continue to expand our wholesale business. We expect these initiatives, along with improvements to our customers’ eCommerce experience, to drive greater brand recognition and loyalty as we extend our reach beyond our core skiwear and into the global luxury outerwear market.

“Our successful implementation of these strategies will position us well for growth and increased market share in the second half of the fiscal year, while delivering greater value to our shareholders.”

Fiscal First Six Months 2025 Financial Summary
Total net revenue decreased 3 percent to $2.7 million from $2.8 million in the same year-ago period. The decrease was primarily driven by a $2.0 million decline in collaborations revenue, which was due to the two-year collaboration with Hugo Boss that concluded in fiscal year 2024.

Excluding the Hugo Boss collaboration in the fiscal first half of 2025, total net revenue was virtually flat at $4.81 million in the fiscal second half of 2025 versus $4.85 million in the same year-ago period.

E-commerce net revenue increased 3% to $2.1 million compared to $2.0 million in the year-ago period.

Wholesale revenue totaled $2.7 million, down 3% compared to $2.8 million in the year-ago period.

Gross profit decreased 35 percent to $2.4 million from $3.8 million in the year-ago period, and gross margin was 50.5% compared to 54.7 percent in the year-ago period. The decrease in gross profit and gross margin is attributed to the same reasons mentioned above for the fiscal second quarter of 2025.

Total operating expenses increased 24 percent to $8.4 million from $6.8 million in the year-ago period. The increase was primarily due to increased SG&A expenses, partially offset by decreased marketing and advertising expenses.

Net loss was $4.7 million or $(0.30) per basic and diluted share, compared to a net loss of $3.8 million or $(0.82) per basic and diluted share in the year-ago period.

Adjusted EBITDA was negative $4.9 million, compared to negative $2.9 million in the year-ago period. The decrease in adjusted EBITDA loss was primarily driven by the collaboration with Hugo Boss that concluded in fiscal 2024, plus an increase in SG&A offset by lower marketing and advertising expenses.

Image courtesy Perfect Moment