Perfect Moment Ltd reduced its net losses in the fiscal first quarter ended June 30 while sales declined 22 percent in its seasonally lowest quarter.
full-price luxury brand model.”  The UK-based luxury snow sports and lifestyle brand said the performance reflects its shift to a “full-price luxury brand model” and the company  remains focused on fallwinter selling.
Fiscal Q1 2027 Financial Highlights
  • Revenue declined 21.9 percent to $1.2 million compared to $1.5 million in Q1 FY26.
  • Wholesale revenue increased 268 percent to $563,000 compared to $153,000 in Q1 FY26.
  • Gross margin decreased 580 basis points to 54.5 percent compared to 60.3 percent in Q1 FY26.
  • Total operating expenses decreased 1.4 percent to $3.89 million compared to $3.94 million in Q1 FY26.
  • Loss from operations increased by approximately $205,000 to $3.3 million compared to a loss from operations of $3.1 million in Q1 FY26.
  • Net loss improved by approximately $286,000 to $3.5 million, or 7 cents per diluted share, compared to a net loss of $3.8 million, or 21 cents per diluted share, in Q1 FY26.
  • Adjusted EBITDA loss increased by approximately $564,000 to $3.1 million compared to an adjusted EBITDA loss of $2.6 million in Q1 FY26.
  • Raised $2.0 million of gross proceeds through a securities purchase agreement in May 2026; cash and cash equivalents of $0.7 million at June 30, 2026, with $4.0 million undrawn on the company’s $10.0 million revolving credit facility.

Management Commentary

“Our first fiscal quarter is seasonally our lowest, driven by swimwear and activewear ahead of the winter season, and this year it also reflected a deliberate reset as we transition Perfect Moment to a full-price luxury brand model,” said Jane Gottschalk, co-founder, creative director and president of Perfect Moment. “Our summer activation began later in the quarter than planned, but sales strengthened through June as our campaigns took hold, and the response to the brand – from wholesale partners in particular – has been very encouraging. Our energy is now firmly focused on September: the launch of our Fall/Winter 2026 collection, a step-up in brand activation, and a sharper eCommerce and marketing engine to convert the brand’s momentum into full-price sales through our peak season.”
Chath Weerasinghe, chief financial and operating officer of Perfect Moment, commented: “In Q1, the company continued to execute on its transformation, with a focus on strengthening its technology and operating infrastructure to support future scale and disciplined, sustainable growth. Additionally, total operating expenses remained essentially flat year-over-year, while we continued to make targeted investments in agency support and event-based growth activations. Together with significantly lower financing costs, this contributed to a further narrowing of our net loss.
“We also strengthened our balance sheet during the quarter, securing $2.0 million through our May 2026 securities purchase agreement, alongside our $10.0 million revolving credit facility. With inventory well positioned for the upcoming winter season, we are now focused on disciplined execution through our September launch and the peak trading period.”
Fiscal Q1 2027 Financial Summary
Reflecting the seasonality of the business, the fiscal first quarter is historically the lowest revenue quarter. In fiscal 2026, the first quarter represented approximately 6 percent of annual revenue, with sales in the period driven by swimwear and activewear ahead of the fall/winter season.
First quarter total net revenue decreased 21.9 percent to $1.2 million compared to $1.5 million in the year-ago quarter. The decrease was primarily driven by non-recurring partnership revenue, together with lower eCommerce revenue as the company transitions toward a full-price brand model, partially offset by strong growth in wholesale revenue.
First quarter eCommerce net revenue decreased 40.2 percent to $585,000 compared to $978,000 in the year-ago quarter, reflecting the company’s strategic shift away from discounted online sales as it transitions toward a full-price brand model.
First quarter wholesale revenue increased 268 percent to $563,000 compared to $153,000 in the year-ago quarter, reflecting the continued build-out of the company’s wholesale channel ahead of the winter season.
First quarter gross profit decreased to $627,000 compared to $889,000 in the year-ago quarter. First quarter gross margins were 54.5 percent compared to 60.3 percent in the year-ago quarter. The decrease was primarily attributable to a change in revenue mix, as the year-ago quarter benefited from higher-margin partnership revenue that did not recur in the current period. This was partially offset by the company’s continued focus on disciplined pricing, inventory management and sourcing initiatives.
First quarter total operating expenses decreased 1.4 percent to $3.89 million from $3.94 million in the year-ago quarter. The decrease was driven by continued cost discipline across the organization, partially offset by increased agency support and event-based activations designed to drive growth across both direct-to-consumer and wholesale channels. The company remains focused on managing its operating cost base while continuing to invest selectively in initiatives that support long-term growth.
First quarter loss from operations increased by approximately $205,000 to $3.3 million compared to a loss from operations of $3.1 million in the year-ago quarter.
First quarter net loss was $3.5 million, or $(0.07) per diluted share, compared to a net loss of $3.8 million, or $(0.21) per diluted share, in the year-ago quarter. The improvement primarily reflects a $542,000 decrease in interest expense and finance costs following the restructuring of the company’s financing arrangements.
First quarter adjusted EBITDA loss increased by approximately $564,000 to $3.1 million compared to an adjusted EBITDA loss of $2.6 million in the year-ago quarter. The increase in adjusted EBITDA loss primarily reflects lower revenue and gross margin compared with the prior-year period, partially offset by continued discipline in operating expenses and ongoing efforts to manage the company’s cost structure.
Balance Sheet Highlights
Cash and cash equivalents were $0.7 million at June 30, 2026, compared to $1.2 million at March 31, 2026. During the quarter, the company raised $2.0 million of gross proceeds through its May 2026 securities purchase agreement and drew $0.9 million on its $10.0 million revolving credit facility, with $6.0 million drawn at quarter-end. An additional $1.0 million was drawn on the facility in July 2026. Accounts receivable were $1.1 million at June 30, 2026, compared to $2.1 million at March 31, 2026, primarily reflecting the collection of outstanding receivables during the quarter, supporting liquidity in the current period.
Inventory was $3.7 million at June 30, 2026, compared to $3.9 million at March 31, 2026, reflecting improved inventory planning and purchasing timing. Purchases remain weighted toward the upcoming winter season and expanded sales channels, positioning the company for stronger sell-through performance during its peak season.
Image courtesy Perfect Moment