Perfect Moment Ltd. (NYSE American: PMNT), the high-performance,
luxury skiwear and lifestyle brand that fuses technical excellence
with fashion-led designs, has reported results for the fiscal first
quarter ended June 30, 2024. All financial comparisons are to the
same year ago quarter unless otherwise noted.
Financial Highlights
- Gross revenue increased 43% to $1.9 million from $1.3 million
in the same year-ago quarter.
- Total net revenue was relatively consistent at $974,000. The
first fiscal quarter has traditionally been the company’s lowest
quarter of the year due to seasonality, historically representing
less than 5% of the company’s annual net revenues.
- Cash, cash equivalents and restricted cash totaled $4.0 million
at June 30, 2024, with no long-term debt.
Operational Highlights
- Launched an Ibiza-inspired Summer Capsule Collection across the
company’s global eCommerce channels. The collection was highlighted
in a photoshoot published in British Vogue featuring photographer
Grace Burns and models, Stella Jones and Paloma Baygual, wearing
items from the collection.
- As part of the Summer Capsule Collection and to further expand
the company’s product offerings beyond its traditional luxury
performance skiwear, collaborated with Oliver James Lilos to create
limited-edition Hammock Lilo and Double Lilo summer
accessories.
- Launched a product resale program, “Perfect Second Moment,” in
partnership with leading luxury platform, Reflaunt. By facilitating
the resale of pre-loved skiwear and accessories through Reflaunt's
technology, the program extends the longevity of Perfect Moment’s
high-quality luxury items and builds upon the brand’s reputation
for quality and durability.
- Partnered with Domo, a data experience platform, to drive real
time insights and improve decision support as the company scales
its eCommerce business.
Marketing & Brand Highlights
- Launch of the Perfect Moment Spring Summer 2024 (SS24) capsule
collection at Soho House & Co’s Miami Pool House generated
significant brand awareness during the off-season. The event
coincided with the commencement of Miami Swim Week, where Perfect
Moment hosted a brand activation that included fashion models and
social media influencers with collective reach of more than 1.8
million followers.
- Perfect Moment’s following across social media platforms,
including Instagram, Facebook and TikTok, reached 387,000
followers, up 1.3% from March 31, 2024 and up 19% from the same
year ago quarter, making Perfect Moment increasingly one of the
world’s most followed luxury brands.
- Social audience reached by content posted by global key opinion
leaders (KOLs) about Perfect Moment totaled more than 134 million.
This represents the total combined followers of the celebrities,
influencers, models, media publications, and fashion industry
notables who organically posted about the brand during the quarter.
It included Instagram posts by Priyanka Chopra Jonas (91.1 million
followers) and Paris Hilton (26.6 million followers) wearing and
tagging @perfectmomentsports.
- Global media coverage during the quarter included an exclusive
article in British Vogue featuring the company’s new SS24 campaign
photographed by Grace Burns, as well as coverage across Women’s
Wear Daily, Vogue Hong Kong, Vanity Fair, Harper’s BAZAAR, The
Telegraph, WhoWhatWear, Grazia, and The Impression.
- Total number of global unique visitors per month (UVPM) reached
more than 1.4 billion during the first quarter of fiscal 2025,
representing the combined number of UVPM reached by all global
digital media coverage during the quarter.
Subsequent Events
- In July, Perfect Moment partnered with Quiet Platforms, a
wholly owned subsidiary of American Eagle Outfitters (NYSE: AEO) to
establish distribution and order fulfillment centers in the
U.S.
- In August, Perfect Moment secured its first pop-up retail
location in the SoHo neighborhood of New York City, with grand
opening planned for October.
Management Commentary
“In fiscal Q1, traditionally our lowest quarter of the year, our
gross revenue growth of 43% was driven by continued eCommerce
expansion,” stated Perfect Moment CEO Mark Buckley. “The
end-of-season sale for autumn/winter 2023 (AW23) included an
unusually high percentage of product sold at a discount. This was
to make way for a significantly new collection replacing many of
our product lines for autumn/winter 2024 (AW24), which was partly
due to an upcoming change in legislation in some of our markets for
the use of Durable Water Repellency treatments. Discounting has
driven higher returns. The discounted returns when combined with
fiscal 2024 product returned in the first quarter of fiscal 2025
resulted in net revenue coming in nearly flat for the quarter.
“We continually look for ways to reduce our return rate. In
order to reduce size-related returns, for our new AW24 collection
we have focused on ensuring more consistent sizing across products
and styles. We have also introduced new size specifications and
guidelines that assist eCommerce customers to make more accurate
physical measurements prior to purchase.
“During the quarter, we launched our new Summer capsule. This
lineup took our product range beyond our core ‘on-slope’ skiwear
and into the vastly larger global luxury lifestyle market. We
believe the unique designs set us apart as a global luxury brand,
much like how our luxury performance skiwear has done for many
years. The reach we achieved as part of the launch surpassed our
expectations, driving brand awareness ahead of the upcoming
important ski season.
“We have become one of the most followed luxury ski brands
worldwide due to our holistic marketing approach. The creativity of
the teams to drive awareness during the off-season has been
impressive and resulted in significant fashion press and social
media coverage, especially for a company of our size. This strength
provides opportunities to move our customers through our sales
funnel in a way that will increase revenue, build a community of
followers and ultimately greater customer loyalty.
“We have made progress on our margin expansion strategy with a
strong cross functional effort to improve how we serve U.S.
customers with a local distribution center. We recently partnered
with Quiet Platforms to establish a third-party operated
distribution centers in the U.S. Partnering with a cutting-edge
supply chain management leader like Quiet Platforms helps to
accelerate our ambitious plans for the U.S., a market that
currently represents about 38% of our revenue.
“We believe the new distribution center will help improve
customer experience and lower our duty costs, as well as reduce
outbound and return shipping costs for the U.S. market. We expect
the lower duty costs to greatly improve our eCommerce margin in the
second half of the fiscal year that will lead to an increase in
total margin over fiscal 2024.
“To be consistent with our peers, for the first quarter of
fiscal 2024 we reclassified $377,000 of costs previously
categorized as cost of sales to SG&A. For the fiscal years
ended March 31, 2024 and March 31, 2023, had we reclassified $3.2
million and $2.7 million, respectively, of costs of revenue to
SG&A, our adjusted gross margin would have been 50.9% and
48.7%.
“As our product range expands over time and includes more
year-round apparel and accessories, we see the potential to further
grow our community and elevate our brand by opening our own
physical store locations, both permanent and pop-up. These stores
would be strategically located in major cities and ski resorts and
high-traffic city locations. They would provide a luxury in-store
experience that reflects the premium character of our brand.
“We have already secured our first pop-up store location in the
high-traffic SoHo neighborhood of New York City. The opening is
planned for the Fall and will feature our new AW24 collection. We
are looking to establish other pop-up locations and eventually open
year-round store locations.
“We anticipate these efforts, along with the enhancements to our
customer’s eCommerce shopping experience, will further strengthen
brand awareness and customer loyalty as we expand further beyond
our core skiwear and into the global luxury outerwear market. We
see the successful execution of these initiatives positioning us
well for growth and expanding market share in the second half of
the fiscal year, with the aim to enhance shareholder value.”
Fiscal Q1 2025 Financial Summary
Total net revenue decreased 1% to $974,000 from $988,000 in the
same year-ago quarter. The decrease was driven by increased
eCommerce customer returns as a result of end-of-season
discounting, as well as $143,000 of fiscal 2024 sales returned in
the first quarter of fiscal 2025 greater than the company’s return
reserve. Had the returned product in the first quarter of fiscal
2025 been consistent with Perfect Moment’s historical return
percentage, the company’s adjusted net revenue would have increased
12% to $1.1 million.
eCommerce net revenue decreased 4% to $922,000 compared to
$957,000 in the year-ago quarter. The decrease was attributed to
increased returns as explained above.
Wholesale revenue totaled $52,000, up 68% compared to $31,000 in
the year-ago quarter.
Gross profit decreased 26% to $356,000 from $482,000 in the
year-ago quarter and gross margins were 36.6% compared to 48.8% in
the year-ago period. The decrease was primarily attributed to
fiscal 2024 returns processed in the first quarter of fiscal 2024
that were sold at a higher margin than the average margin of the
company’s sales in the fiscal first quarter of 2025, and the
increased mix of products sold at end-of-season discount compared
to the fiscal first quarter of 2024.
Total operating expenses increased 18% to $3.8 million from $3.2
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 $3.4 million or $(0.22) per basic and diluted
share, compared to a net loss of $2.7 million or $(0.55) per basic
and diluted share in the year-ago period.
Adjusted EBITDA was negative $2.9 million, compared to negative
$2.0 million in the year-ago quarter. The increase in adjusted
EBITDA loss was primarily driven by costs to support growth and an
increase in warehousing and merchant services due to increased
returns. (See definition of adjusted EBITDA, a non-GAAP term, and
reconciliation to GAAP, below.)
Cash, cash equivalents and restricted cash totaled $4.0 million
at June 30, 2024, compared to $7.9 million at March 31, 2024. The
decrease was primarily due to increased cash used in operating
activities.
About Perfect Moment
The Perfect Moment brand was born in 1984 in the mountains of
Chamonix, France. The Perfect Moment brand was relaunched by Max
and Jane Gottschalk in 2012 and was acquired by the company in 2017
and 2018. Perfect Moment is a high-performance luxury skiwear and
lifestyle brand. It blends technical excellence with
fashion-forward designs, creating pieces that effortlessly
transition from the slopes to the city, the beach, and beyond.
Initially the vision of extreme sports filmmaker and
professional skier Thierry Donard, the brand was built on a sense
of adventure that has sustained for over 20 years. Donard, fueled
by his personal experiences, was driven by a desire to create
pieces that offered quality, style and performance, pushing the
wearer in the pursuit of every athlete’s dream: to experience ‘The
Perfect Moment.’
In 2012, British-Swiss entrepreneurial couple Jane and Max
Gottschalk took ownership of the brand. Under Jane’s creative
direction Perfect Moment was injected with a new style focus, one
that reignited the spirit of the heritage brand, along with a
commitment to improving fit, performance and the use of
best-in-class functional materials. As such, the designs evolved
into distinct statement pieces synonymous with the brand as we know
it today.
Today, the brand is available globally, online and via key
retailers, including MyTheresa, Net-a-Porter, Harrods, Selfridges,
Saks, Bergdorf Goodman and Neiman Marcus.
Learn more at www.perfectmoment.com.
Receipt of Audit Opinion with Going Concern
Qualification
The audit opinion provided by the Perfect Moment’s independent
registered public accounting firm, Weinberg & Company, P.A.,
relating to the company's audited consolidated financial statements
for the year ended March 31, 2024, included a going concern
qualification. The financial statements were included in the
company's Annual Report on Form 10-K for the year ended March 31,
2024, which was filed with the Securities and Exchange Commission
on July 1, 2024. The opinion of the company’s independent
registered public accounting firm notes that the company incurred
recurring losses, had a net loss and used cash in operations during
the year ended March 31, 2024, and had an accumulated deficit at
March 31, 2024. The company’s independent registered public
accounting firm indicated in its opinion that these matters raise
substantial doubt about the company's ability to continue as a
going concern.
The company’s ability to continue as a going concern for 12
months from the date these consolidated financial statements were
available to be issued is dependent upon its ability to generate
sufficient cash flows from operations to meet its obligations,
which it has not been able to accomplish to date, and to obtain
additional capital financing. No assurance can be given that the
company will be successful in its efforts to alleviate these
conditions.
Important Cautions Regarding Forward-Looking
Statements
This press release contains “forward-looking statements” within
the meaning of the safe harbor provisions of the U.S. Private
Securities Litigation Reform Act of 1995. All statements, other
than statements of historical fact, contained in this press release
are forward-looking statements. Forward-looking statements
contained in this press release may be identified by the use of
words such as “anticipate,” “believe,” “contemplate,” “could,”
“estimate,” “expect,” “intend,” “seek,” “may,” “might,” “plan,”
“potential,” “predict,” “project,” “target,” “aim,” “should,”
“will” “would,” or the negative of these words or other similar
expressions, although not all forward-looking statements contain
these words. Forward-looking statements are neither historical
facts nor assurances of future performance. Instead, they are based
on our current expectations and are subject to inherent
uncertainties, risks and assumptions that are difficult to predict.
Further, certain forward-looking statements are based on
assumptions as to future events that may not prove to be accurate.
Our actual results and financial condition may differ materially
from those indicated in the forward-looking statements. Therefore,
you should not rely on any of these forward-looking statements.
Important factors that could cause our actual results and financial
condition to differ from those contained in the forward-looking
statements, include those risks and uncertainties described more
fully in the section titled “Risk Factors” in the final prospectus
for our initial public offering and in our Form 10-K for the fiscal
year ended March 31, 2024, filed with the Securities and Exchange
Commission. Any forward-looking statements contained in this press
release are made as of this date and are based on information
currently available to us. We undertake no duty to update any
forward-looking statement, whether written or oral, that may be
made from time to time, whether as a result of new information,
future developments or otherwise.
Definition of Key Opinion Leaders
The company defines a key opinion leader (KOL) as a person who
is considered an expert on a certain topic and whose opinions are
respected by the public due to their trajectory and the reputation
they have built. They are typically identified by their reach,
social media following and stature. A KOL may include but is not
limited to celebrities, social media influencers, fashion models,
contributors to media publications, and noted members of the
fashion industry. There is no official listing or accreditation of
KOLs, so the term is subjective, and therefore the list and
definition may vary from company to company. The source of the KOL,
social media and audience reach statistics provided in this release
are reports by the company’s public relations firm. No reliance
should be made upon their accuracy or timeliness.
PERFECT MOMENT LTD AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(Amounts in thousands, except
share and per share data)
(Unaudited)
Three Months
Ended
June 30, 2024
Three Months
Ended
June 30, 2023
Revenues:
Wholesale
$
52
$
31
Ecommerce
922
957
Total Revenue
974
988
Cost of goods sold
618
506
Gross Profit
356
482
Operating Expenses:
Selling, general and administrative
expenses
3,298
2,482
Marketing and advertising expenses
453
709
Total operating expenses
3,751
3,191
Loss from operations
(3,395
)
(2,709
)
Other income (expense), net
Interest expense
(5
)
(374
)
Foreign currency transaction gains
12
410
Total other income (expense), net
7
36
Net loss
(3,388
)
(2,673
)
Other comprehensive
gains/(losses)
Foreign currency translation
(losses)/gains
(14
)
(388
)
Comprehensive loss
$
(3,402
)
$
(3,061
)
Net loss per share to common stockholders
- basic and diluted
$
(0.22
)
$
(0.55
)
Weighted average number of common shares
outstanding – basic and diluted
15,653,449
4,854,061
PERFECT MOMENT LTD. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Amounts in thousands, except
share data)
June 30,
2024
March 31,
2024
unaudited
Assets
Current assets:
Cash and cash equivalents
$
1,102
$
7,910
Restricted cash
2,850
-
Accounts receivable, net
307
1,035
Inventories, net
2,018
2,230
Prepaid and other current assets
2,386
742
Total current assets
8,663
11,917
Non-current assets:
Property and equipment, net
461
502
Operating lease right-of-use asset
119
143
Other non-current assets
46
47
Total non-current assets
626
692
Total Assets
$
9,289
$
12,609
Liabilities and Shareholders’
Equity
Current liabilities:
Trade payables
$
1,567
$
1,584
Accrued expenses
1,839
2,697
Operating lease obligations, current
portion
93
101
Unearned revenue
1,031
420
Total current liabilities
4,530
4,802
Non-current liabilities:
Operating lease obligations, long-term
portion
28
44
Total non-current liabilities
28
44
Total Liabilities
4,558
4,846
Shareholders’ equity:
Common stock; $0.0001 par value;
100,000,000 shares authorized; 15,653,449 shares issued and
outstanding as of June 30, 2024 and March 31, 2024,
respectively
1
1
Additional paid-in capital
57,194
56,824
Accumulated other comprehensive loss
(99
)
(85
)
Accumulated deficit
(52,365
)
(48,977
)
Total shareholders’ equity
4,731
7,763
Total Liabilities and Shareholders’
Equity
$
9,289
$
12,609
Use of Non-GAAP Measures
In addition to our results under generally accepted accounted
principles (“GAAP”), we present Adjusted EBITDA as a supplemental
measure of our performance. However, Adjusted EBITDA is not a
recognized measurement under GAAP and should not be considered as
an alternative to net income, income from operations or any other
performance measure derived in accordance with GAAP or as an
alternative to cash flow from operating activities as a measure of
liquidity. We define Adjusted EBITDA as net income (loss), plus
interest expense, depreciation and amortization, income tax benefit
(expense) and stock-based compensation.
Management considers our core operating performance to be that
which our managers can affect in any particular period through
their management of the resources that affect our underlying
revenue and profit generating operations in that period. Non-GAAP
adjustments to our results prepared in accordance with GAAP are
itemized below. You are encouraged to evaluate these adjustments
and the reasons we consider them appropriate for supplemental
analysis. In evaluating Adjusted EBITDA, you should be aware that
in the future we may incur expenses that are the same as or similar
to some of the adjustments in this presentation. Our presentation
of Adjusted EBITDA should not be construed as an inference that our
future results will be unaffected by unusual or non-recurring
items.
For the Three Months
Ended
June 30, 2024
June 30, 2023
Net loss, as reported
$
(3,388
)
$
(2,673
)
Adjustments:
Interest expense
5
374
Stock compensation expense
370
10
Amortization of pre-paid marketing
-
185
Depreciation and amortization
106
141
Total EBITDA adjustments
481
710
Adjusted EBITDA
$
(2,907
)
$
(1,963
)
We present adjusted EBITDA because we believe it assists
investors and analysts in comparing our performance across
reporting periods on a consistent basis by excluding items that we
do not believe are indicative of our core operating performance. In
addition, we use Adjusted EBITDA in developing our internal
budgets, forecasts, and strategic plan; in analyzing the
effectiveness of our business strategies in evaluating potential
acquisitions; and in making compensation decisions and in
communications with our board of directors concerning our financial
performance. Adjusted EBITDA has limitations as an analytical tool,
which includes, among others, the following:
- Adjusted EBITDA does not reflect our cash expenditures, or
future requirements, for capital expenditures or contractual
commitments;
- Adjusted EBITDA does not reflect changes in, or cash
requirements for, our working capital needs;
- Adjusted EBITDA does not reflect future interest expense, or
the cash requirements necessary to service interest or principal
payments, on our debts; and
- Although depreciation and amortization are non-cash charges,
the assets being depreciated and amortized will often have to be
replaced in the future, and the Adjusted EBITDA does not reflect
any cash requirements for such replacements.
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version on businesswire.com: https://www.businesswire.com/news/home/20240814016809/en/
Company Contact Jeff Clayborne, CFO Perfect Moment Tel
+44 (0)204 558 8849 Email contact
Investor Contact Ronald Both or Grant Stude CMA Investor
Relations Tel (949) 432-7566 Email contact
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