Perfect Moment Q2 revenue drops as losses widen

Skiwear brand Percent Moment reported its fiscal Q2 2025 financials, reflecting a year in which the brand has put a focus on growing awareness and presence across regions.

Despite this, total net revenue fell 35 percent to 3.8 million dollars compared to the same period last year. The company cited the conclusion of its Hugo Boss collaboration as the cause, bringing in a decrease of two million dollars in collaboration revenue over the period.

Excluding the Hugo Boss collaboration, Perfect Moment reported that its total net revenue was “virtually flat”, amounting to 3.8 million dollars versus 3.9 million dollars in the year prior.

While e-commerce revenue rose 8 percent to 1.2 million dollars, wholesale revenue dropped 4 percent, totalling 2.7 million dollars over the period. Perfect Moment said the decrease was attributed to the timing of wholesale shipments.

Gross profit dropped 37 percent to 2.1 million dollars, while its gross margin came to 54 percent, compared to its prior 55.7 percent, a drop that came as a result of continued end-of-season sales for autumn/winter 2023 that “included an unusually high percentage of products sold at a discount”.

Improving gross margin and reviewing European distribution on task list

Net loss for Perfect Moment rose to 2.7 million dollars, compared to a net loss of 0.8 million dollars, while adjusted EBITDA was at negative 2 million dollars, an increase on its formerly reported 958,000 dollars.

For the fiscal six months, optimism was also fairly dampened by a total net revenue decrease of 3 percent to 2.7 million dollars. Over this period, gross profit also took a hit, falling 35 percent, while net losses widened to 4.7 million dollars.

Looking ahead, Perfect Moment CEO, Mark Buckley, said: “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 US distribution centre last month. Following the facility opening, we realised an immediate improvement in operating efficiency. We also expect it to reduce duty costs for e-commerce orders in the second half of this fiscal year, with this helping to drive improved gross margins compared to last year.”

Buckley added that the company would be reviewing its European distribution strategy to improve margins in the fiscal year 2026, while further focusing on accelerating its online sales growth and expanding its direct-to-consumer channel.