Perfect Moment, Ltd., the manufacturer of performance, luxury skiwear and lifestyle apparel, reported results for its fiscal third quarter 2025 ended December 31, 2024.

Financial Highlights

  • Total net revenue declined 8 percent to $11.7 million from the prior-year Q3 quarter, said to be largely due to a decrease in collaboration revenue partially offset by an increase in retail net revenue.
  • Collaborations revenue declined by $1.1 million due to the conclusion of a two-year collaboration with Hugo Boss that ended in fiscal year 2024. The decrease was partially offset by revenue generated from a new Johnnie Walker collaboration with Diageo.
  • Excluding the Hugo Boss collaboration revenue, total net revenue for the quarter was relatively consistent with the year-ago at $11.6 million.
  • E-commerce gross revenue increased 7 percent to $5.4 million, with eCommerce net revenue declining 1 percent.
  • Wholesale net revenue decreased 6 percent to $7.3 million, driven by phased deliveries to match customer demand.
  • Gross margin improved 273 basis points to 54.8 percent from 52.1 percent in the same year-ago quarter. The improvement was due to the company’s successful margin expansion initiatives, including opening its first U.S. distribution center in October.

Recent Leadership Changes to Support Future Growth

  • Chath Weerasinghe, previously a senior executive at Canada Goose responsible for its global expansion, was appointed chief financial officer and chief operating officer of Perfect Moment.
  • Vittorio Giacomelli, former vice president of product and sourcing at Canada Goose, will be responsible for overseeing product strategy, product development and innovation. He brings decades of expertise in design, product development and sourcing.
  • Perfect Moment Co-founder and Chief Creative Officer Jane Gottschalk was appointed to the additional position of president.

Management Commentary
“Fiscal Q3 was a milestone quarter for Perfect Moment with the launch of our first retail stores in New York and London,” commented Perfect Moment President and Chief Creative Officer Jane Gottschalk. “This helped us deliver relatively consistent eCommerce revenue compared to the year-ago quarter despite a currently challenging marketplace, with these new stores contributing $516,000 in the quarter.

“We also implemented strategies that lowered our marketing expenses by 30 percent versus the same year-ago quarter, and we further improved our supply chain operations and expanded our global brand awareness.

“The launch of our new seasonal stores marked a significant evolution for Perfect Moment in how it has enabled us for the first time to engage directly with our après-ski community. Building upon our success in these high-end retail markets, we opened our first European seasonal store at Kitzbühel, furthering our exploration of establishing physical retail locations at select luxury destinations.

“We are planning to leverage our new physical store network to expand our brand identity and profile, as well as drive higher levels of loyalty and engagement at the local level.

“During the quarter, we continued to elevate our brand worldwide in a multi-million-dollar co-marketing campaign with the world’s #1 Scotch whisky maker, Johnnie Walker. Major media events in New York City and London introduced the new Johnnie Walker Blue Label Ice Chalet Scotch Whisky. This included the launch of our exclusive Ice Chalet capsule skiwear collection featuring coordinating designs.

“The co-marketing campaign continued last month with the hosting of major promotional events at the St. Regis Hotel in Deer Valley, UT, and an immersive pop-up experience in Japan’s renowned winter resort, Niseko. This exceptionally well-received global campaign has expressed our collective vision of a premium, world-class après-ski incident — one that blends luxury with excellence in performance on every level.

“We continue to make significant progress across our margin expansion projects, which has included the opening of our first U.S. distribution center last October. This new center has enabled us to improve our operating efficiency and customer experience. We have been able to lower our duty cost and reduce outbound and return shipping cost for the U.S. market, which represented more than 40 percent of our revenue in our 2024 fiscal year.

“As a result of these lower costs, our gross margin improved 273 basis points in the fiscal third quarter. We anticipate continued gross margin improvement in the current quarter and, ultimately, significant improvement for the full year.

“Our U.S. eCommerce revenue began flowing through the new distribution center in the fiscal third quarter, and we expect our wholesale revenue to begin flowing through it beginning in fiscal year 2026. We are also reviewing our European distribution strategies to improve margins in the fiscal year 2026. Our European sales represented more than 30% of our revenue in fiscal 2024.

“We recently implemented a change in senior leadership that introduces a different skill set for taking Perfect Moment to its next level of growth and development. This reorganization and expense reduction program reflects the combination of changes planned under our new leadership and a strategic response to prevailing market conditions.

“Over the last few months, we have engaged top-tier sales agencies to grow our brand presence in North America, UK, Europe, and Asia. Our recently appointed head of business development, Rosela Mitropoulos, is working closely with our new sales agencies to ensure that the management of our distribution strategy is aligned with our in-house goals, brand values and positioning.

“We anticipate these partnerships to significantly increase our market visibility and relationships with key buyers, and help set the stage for record sales of our Fall/Winter 2025 collection. We also expect these new partnerships to lay the groundwork for our long-term growth, particularly in outerwear and knitwear categories, as well as expand our brand’s appeal from the slope to the city and extend our selling period throughout the year.

“Our plans to broaden our outerwear product range will take us beyond our core skiwear with fewer technical lifestyle products and a wider range of exceptional products for any occasion, including year-round accessories. We see these new lines of lifestyle products helping us create new inroads into the global luxury outerwear market. Compared to the global luxury ski wear market, the global luxury outerwear market is 10 times larger and faster growing.

“Looking ahead, we believe our new leadership and growing brand awareness positions us well to capture growth opportunities in the expanding luxury outerwear category. Through a blend of bold creativity and operational excellence, we plan to further expand our global presence, deliver exceptional products, and create greater value for our customers and shareholders.”

Fiscal Q3 2025 Financial Summary
Total net revenue in the fiscal third quarter of 2025 decreased 8 percent to $11.7 million from $12.7 million in the same year-ago quarter. The decrease was primarily due to a $1.1 million decline in collaboration revenue from the two-year collaboration with Hugo Boss that concluded in fiscal 2024.

Excluding collaboration revenue, net revenue was relatively consistent at $11.57 million in the fiscal third quarter of 2025 versus $11.58 million in the same year-ago quarter.

E-commerce net revenue declined 1% to $3.7 million compared to $3.8 million in the year-ago quarter.

Wholesale revenue totaled $7.3 million, down 6 percent compared to $7.8 million in the year-ago quarter. The decrease in wholesale revenue was driven by phased deliveries to match customer demand.

Gross profit decreased 4 percent to $6.4 million from $6.6 million in the year-ago quarter, with gross margin increasing to 54.8 percent compared to 52.1 percent in the year-ago period. The gross profit decrease was driven by lower sales primarily attributed to the collaboration with Hugo Boss that concluded in fiscal year 2024. The gross margin percentage improvement was due to implementing the company’s margin expansion initiatives, including opening its first U.S. distribution center.

Total operating expenses increased 30 percent to $7.7 million from $5.9 million in the year-ago quarter. The increase was due to increased SG&A expenses, partially offset by decreased marketing and advertising expenses.

Net loss totaled $2.5 million or a loss of 15 cents per basic and diluted share, compared to a net income of $1.2 million or 8 cents per diluted share in the year-ago period.

Adjusted EBITDA totaled a negative $671,000, compared to a positive $1.7 million in the year-ago quarter. The decrease was primarily attributed to the two-year collaboration with Hugo Boss that ended in fiscal 2024. The decrease was also due to an increase in SG&A, partially offset by lower marketing and advertising expenses.

Cash, cash equivalents and restricted cash totaled $4.1 million as of December 31, 2024, compared to $2.6 million as of September 30, 2024. The increase was primarily due to increased cash provided by financing activities.

Image courtesy Perfect Moment x J