Perfect Moment, Ltd., the London-based luxury skiwear maker, reported flat sales in the fiscal third quarter ended December 31, but achieved profitability, with the third consecutive quarter of gross margin and EBITDA improvement.

Fiscal Q3 2026 Financial Highlights

  • Revenue was consistent with Q3 FY25 at approximately $11.7 million.
  • Gross margin improved to 64.4 percent, up from 54.8 percent in Q3 FY25.
  • Total operating expenses decreased 9.9 percent to $6.9 million compared to $7.7 million in Q3 FY25.
  • Income from operations improved by approximately $1.9 million to $583,000 compared to a loss from operations of $1.3 million in Q3 FY25.
  • Net income improved by approximately $2.6 million to $93,000, or $0.00 per diluted share, compared to a net loss of $2.5 million, or $(0.15) per diluted share, in Q3 FY25.
  • Adjusted EBITDA improved by $1.6 million to $882,000 compared to an adjusted EBITDA loss of $671,000 in Q3 FY25.

Fiscal First Nine Months 2026 Financial Highlights

  • Revenue up 8.7 percent to $17.9 million compared to $16.5 million in the year-ago period.
  • Gross margin improved to 62.7 percent, up from 53.6 percent in the year-ago period.
  • Total operating expenses decreased 7.7 percent to $14.8 million compared to $16.1 million in the year-ago period.
  • Loss from operations improved by approximately $3.6 million to $3.6 million compared to $7.2 million in the year-ago period.
  • Net loss improved by approximately $3 million to $5.6 million, or $(0.21) per diluted share, compared to $8.6 million, or $(0.54) per diluted share, in the year-ago period.
  • Adjusted EBITDA loss improved by $3.1 million to $2.5 million compared to $5.6 million in the year-ago period.

Management Commentary
“Our third quarter reflects the transformational work we’ve executed across product, operations, supply chain and financial discipline, and we are clearly seeing these efforts reflected in our results,” said Jane Gottschalk, co-founder, creative director and president. “We delivered our first profitable quarter, driven by an improvement of over $2.5 million in net income. Our progress in evolving the brand from a seasonal winter business into a four-season luxury outerwear and lifestyle company is well underway, supported by product diversification and the expansion of our target consumer to include men’s and kids’ collections across the full household. Our results demonstrate that our strategy is working, and our disciplined approach to operations is driving continued momentum as we close fiscal 2026.”

Chath Weerasinghe, chief financial and operating officer, commented: “We delivered solid financial performance, including 9 percent revenue growth for the nine-month period compared to last year, supported by strong wholesale and partnership revenues. Quarterly gross margins expanded by 960 basis points to 64.4 percent, reflecting continued progress across product mix elevation, supply-chain optimization and disciplined execution. We are managing costs effectively as part of our restructuring efforts and remain confident in our ability to deliver lasting shareholder value.”

Recent Operational and Strategic Highlights

  • Expansion of European Manufacturing Partnerships: Expanded manufacturing footprint into Europe, materially improving product quality and time-to-market, strengthening long-term brand durability by providing priority access and deeper factory alignment.
  • Global Collaboration with H&M: In early December 2025, the company launched its global collaboration with H&M, showcasing Perfect Moment’s après-ski offering through H&M’s e-Commerce platform and in 86 high-traffic stores worldwide. The collection performed well and sold out in the first day, expanding brand reach across a broad customer base.
  • Physical Retail Footprint Expansion: Opened its first owned retail store in Verbier, Switzerland, and confirmed seasonal pop-up locations in Kitzbühel, Gstaad, Jackson Hole, and Aspen, serving as strategically important hubs for high-intent customer acquisition.

Marketing & Brand Highlights

  • Appointment of Sharifa Al Sudairi (shown lead photo) as Brand Ambassador: She brings competitive credibility and a “pioneering spirit” to the company’s global community.
  • Launch of Perfect Moment x BWT Alpine F1 Team Winter Capsule: The brand’s first winter capsule also features its first fashion campaign filmed inside an active Formula 1 wind tunnel at Alpine’s Enstone facility.

Fiscal Q3 and First Nine Months 2026 Financial Summary
Third-quarter total net revenue was consistent with the year-ago quarter at approximately $11.7 million. For the first nine months of fiscal 2026, total net revenue was $17.9 million, an increase of 8.7 percent compared to $16.5 million in the same comparable year-ago period. The increase was driven by a stronger wholesale order book and improved operational execution, enabling more efficient fulfillment and shipping timing compared to the prior period.

Third-quarter e-commerce net revenue decreased 21 percent to $2.9 million, compared with $3.7 million in the year-ago quarter. For the first nine months of fiscal 2026, e-commerce net revenue decreased 21.8 percent to $4.5 million compared to $5.8 million in the same comparable year-ago period. The decreases reflect the company’s strategic shift away from discounted online sales as it transitions toward a full-price brand model.

Third quarter wholesale revenue increased 15.4 percent to $8.5 million compared to $7.3 million in the year-ago quarter. For the first nine months of fiscal 2026, wholesale revenue increased 28.4 percent to $12.9 million compared to $10.1 million in the same comparable year-ago period.

Third quarter gross profit increased 17.5 percent to $7.5 million compared to $6.4 million in the year-ago quarter. Third-quarter gross margins were 64.4 percent compared to 54.8 percent in the year-ago quarter. For the first nine months of fiscal 2026, gross profit increased 27.2 percent to $11.2 million compared to $8.8 million in the same comparable year-ago period. During the same period, gross margins were 62.7 percent, up from 53.6 percent. The increases primarily reflect favorable channel mix, which includes growth in higher-margin revenue streams, and the company’s ongoing focus on pricing and supply chain discipline.

Third quarter total operating expenses decreased 9.9 percent to $6.9 million from $7.7 million in the year-ago quarter. For the first nine months of fiscal 2026, total operating expenses decreased 7.7 percent to $14.8 million from $16.1 million in the same comparable year-ago period. The decreases were driven by continued cost discipline and by marketing initiatives more evenly phased throughout the year.

Third quarter income from operations improved by approximately $1.9 million to $583,000 compared to a loss from operations of $1.3 million in the year-ago quarter. For the first nine months of fiscal 2026, loss from operations improved by approximately $3.6 million to $3.6 million compared to $7.2 million in the same comparable year-ago period.

Third quarter net income was $93,000, or $0.00 per diluted share, compared to a net loss of $2.5 million, or $(0.15) per diluted share, in the year-ago quarter. For the first nine months of fiscal 2026, net loss was $5.6 million, or $(0.21) per diluted share, compared to a net loss of $8.6 million, or $(0.54) per diluted share, in the same comparable year-ago period.

Third quarter adjusted EBITDA improved by $1.6 million to $882,000 compared to an adjusted EBITDA loss of $671,000 in the year-ago quarter. For the first nine months of fiscal 2026, adjusted EBITDA loss improved by $3.1 million to $2.5 million compared to $5.6 million in the same comparable year-ago period. The improvements in adjusted EBITDA were primarily driven by the increase in gross profit, warehouse efficiencies and better cost control across distribution activities.

Balance Sheet Highlights
The company’s liquidity position at December 31, 2025, reflects accounts receivable of $5.1 million, up from $4.8 million at September 30, 2025. This increase primarily reflects a timing difference in customer payments. This balance is trending down in the fiscal fourth quarter as payments are received, supporting overall liquidity in the current fiscal period.

Inventory of $4.6 million remains consistent with the same period last year. With Q4 representing Perfect Moment’s largest direct-to-consumer quarter, the company believes it is well positioned to execute on anticipated demand.

Short-term borrowing facilities outstanding as of March 31, 2025, were fully repaid during the third quarter of fiscal 2026. In the second quarter of fiscal 2026, the company secured a long-term debt facility, which lowered interest expenses and further strengthened its balance sheet.

Image courtesy Perfect Moment / Sharifa Al Sudairi