Perfect Moment Reports Fiscal 2024 Results
Perfect Moment (NYSE American: PMNT), a luxury skiwear and lifestyle brand, reported financial results for fiscal 2024.
Total net revenue rose 4% to $24.4 million, driven by a 21% increase in eCommerce sales, reaching a record $10.4 million. Gross profit improved to 37.8%, while operating expenses decreased 3% to $16.9 million. Net loss narrowed to $8.7 million from $10.3 million the previous year. IPO proceeds of $6.0 million and $12 million debt conversion strengthened the balance sheet.
Brand awareness grew significantly, with digital media coverage reaching over 7.5 billion unique visitors per month. The company also launched new product lines, expanded its social media presence, and engaged new corporate governance members. Perfect Moment aims to continue expanding eCommerce, enhance gross margins, and enter the broader luxury outerwear market.
- Total net revenue increased 4% to $24.4 million.
- eCommerce sales up 21% to a record $10.4 million.
- Gross profit improved to 37.8%.
- Operating expenses decreased 3% to $16.9 million.
- Net loss improved to $8.7 million from $10.3 million.
- IPO proceeds of $6.0 million and $12 million debt conversion strengthened the balance sheet.
- Digital media coverage reached over 7.5 billion unique visitors per month.
- Significant growth in brand awareness and social media presence.
- Wholesale revenue down 6% to $14.1 million.
- Adjusted EBITDA was negative $5.9 million, worsening from negative $2.5 million the previous year.
Insights
Perfect Moment's fiscal 2024 results showcase notable achievements and some areas of concern. The company reported a 4% increase in total net revenue to
Despite these gains, the company still reported a net loss of
Operating expenses decreased by 3% to
The report highlights Perfect Moment's strategic focus on brand awareness and digital marketing. They have significantly leveraged collaborations and media coverage, with total global unique visitors per month (UVPM) reaching a staggering 7.5 billion during the 2023 ski season. This level of exposure is critical for enhancing brand equity and is likely to translate into sustained consumer interest and sales growth over the long term. Additionally, their social media strategy appears robust, with a 19% increase in followers year-over-year, taking the total to 387,000. This is significant for a luxury brand, as high engagement on social platforms often correlates with increased consumer spending.
The company's collaboration with Global-E to enhance the eCommerce customer experience and drive sales growth is noteworthy. Global-E’s expertise in cross-border eCommerce can help Perfect Moment reduce logistical barriers, potentially leading to an improved gross margin. Additionally, the opening of a distribution center in the U.S. is expected to further enhance customer service and reduce costs related to shipping and duties, which is a strategic move to improve eCommerce margins by fiscal year 2026.
Looking ahead, Perfect Moment’s expansion into the global luxury outerwear market, which is ten times larger than the luxury skiwear market, provides a significant growth avenue. This diversification can buffer against seasonal fluctuations, making revenue streams more stable year-round.
From a technological standpoint, Perfect Moment's focus on enhancing their eCommerce platform is a smart move in today’s digital age. The integration with Global-E to improve the cross-border shopping experience is poised to streamline international sales operations. By reducing logistical friction through local distribution centers, Perfect Moment can offer faster shipping and handling, which is important for maintaining a loyal customer base in the competitive luxury market.
It's also worth noting the emphasis on using advanced digital marketing techniques to generate brand awareness. Utilizing data analytics to understand and engage their audience better can lead to personalized marketing efforts, which tend to yield higher conversion rates. These technological investments are likely to benefit Perfect Moment’s gross margin and overall customer satisfaction in the long term.
-
Fiscal 2024 net revenue increased to a record
$24.4 million 21% to record$10.4 million
- Strengthened balance sheet from NYSE American IPO enabling accelerated marketing, strategic product line expansion and other growth initiatives.
- Total global unique visitors per month (UVPM) to all digital media coverage Perfect Moment received during the 2023 ski season (fiscal Q3 - Q4) exceeded 7.5 billion, further elevating global brand awareness.
Fiscal 2024 Financial Highlights
-
Total net revenue up
4% to a record$24.4 million 21% to a record$10.4 million
-
Gross profit improved 40 basis points to
37.8% .
-
Total operating expenses decreased
3% to$16.9 million
-
Net loss improved by
$1.6 million $8.7 million $10.3 million
-
Cash, cash equivalents and restricted cash totaled
$7.9 million
Fiscal 2024 Operational Highlights
-
On February 8, 2024, completed IPO on the NYSE American stock exchange that generated net proceeds of
$6.0 million $12 million
- Strengthened corporate governance with key appointments to the board: Andre Keijsers, with more than 25 years of capital markets and public company experience; Berndt Hauptkorn, president of Chanel Europe; Tracy Barwin, EVP of Hunter Boot and former head of Digital at Nike; and Tim Nixdorff, CMO of Rag & Bone.
- Appointed as CFO Jeff Clayborne, a highly experienced finance professional who brings more than 25 years of experience in finance, business development, M&A and accounting. Has driven growth and profitability for start-ups to Fortune 100 companies, including Walt Disney and Universal Music Group.
- Engaged logistics partner Global-E to enhance eCommerce customer experience, drive sales growth and improve gross margin.
Marketing & Brand Highlights – Ski Season (Fiscal Q3 & Q4)
-
Perfect Moment total followers across social media platforms, including Instagram, Facebook and TikTok, increased
19% year-over-year to more than 382,000. Today, this totals more than 387,000, making Perfect Moment increasingly one of the world’s most followed luxury brands and the most followed luxury skiwear brand.
- Total social audience reached by content created by global key opinion leaders (KOLs) about Perfect Moment totaled more than 296.6 million. Represents the total combined followers of the celebrities, influencers, models, media publications, and fashion industry notables who organically posted about Perfect Moment.
- Total global unique visitors per month (UVPM) to all digital media coverage on Perfect Moment exceeded 7.5 billion.
-
Hosted several brand events across the
U.S. andEurope which included top fashion models and social media influencers with a collective reach of more than 71 million followers worldwide.
-
Received broad media coverage during the quarter, including feature articles in Vogue (
U.S. and British), Esquire, ELLE, Harper’s BAZAAR, Forbes, WWD, Travel & Leisure, and WhoWhatWear. Also received accolades from Condé Nast Traveler, Town & Country, NY Magazine, Glamour, Evening Standard, GQ, Rolling Stone, and Haute Living Magazine (LA andMiami ).
- To support greater brand engagement, partnered with Soho House & Co., a global hotel chain and group of private clubs with over 1.4 million Instagram followers and have more than 237,000 members represented by the media, arts and fashion industries. In fiscal Q4, Perfect Moment participated in the grand opening of Soho House in Portland, which resulted in greater brand awareness among the company’s target audience.
- Collaborated with luxury apparel brand Marfa Stance to create a four-piece buildable and adaptable capsule collection of jackets and accessories. The exclusive collection was sold globally and received recognition in three stories published by British Vogue that reaches more than 3 million digital readers per month.
-
Featured on the front cover of Modern Luxury Aspen’s Holiday 2023/Winter 2024 issue, featuring model Kate Love wearing exclusively Perfect Moment. Included an eight-page fashion feature with Kate Love styled in Perfect Moment’s autumn/winter 2023 (AW23) collection, and a two-page profile feature with the company’s co-founder and chief creative officer, Jane Gottschalk. As the top luxury fashion publication in
Aspen , Modern Luxury Aspen has 50,000 print subscribers and more than 1.1 million digital readers per month.
Subsequent Event
Last week, Perfect Moment launched an Ibiza-inspired Summer Capsule Collection across the company’s global eCommerce channels. The collection was recently highlighted in a photoshoot published in British Vogue featuring photographer Grace Burns and models Stella Jones and Paloma Baygual wearing items from the collection.
Management Commentary
“Our record total net revenue of
“During the year, our eCommerce growth offset the year-over-year decline in wholesale revenue. Our wholesale revenue was comparatively lower due to exceptionally higher sales in the prior year related to the post-COVID rebound causing an unusual surge during the period. Going forward, we anticipate wholesale will track at more normalized levels.
“While we will remain focused on accelerating our online sales growth and expanding our direct-to-consumer channel, we will continue to strategically expand our wholesale network and deepen the associated relationships.
“We are also working to further improve our eCommerce operations and gross margins by opening distribution centers in key markets, with our first distribution center outside the
“We expect the local distribution centers to improve our customer shopping experience with a faster shipping and return process. Local distribution centers will also lower our import duty and shipping costs. We see this helping to greatly improve our eCommerce margin, and for our eCommerce margin to surpass our wholesale margins by fiscal year 2026.
“We recently launched our Summer capsule which takes our product range far beyond our core ‘on-slope’ skiwear and into the global luxury lifestyle market. We believe the unique designs and functionality of our new summer line continue to set us apart as a global luxury brand.
“We plan to broaden our fall and winter product range which will also take us beyond our core skiwear with fewer technical lifestyle products and a wide range of exceptional products for any occasion, including year-round accessories.
“These new lines of lifestyle products will help us create new inroads into the global luxury outerwear market. Compared to the global luxury skiwear market, the global luxury outerwear market is 10-times larger and faster growing.
“In all, fiscal 2024 was a pivotal year for Perfect Moment, with much delivered yet much more to come. Our growing brand awareness, expansion into global luxury outerwear, improvements in gross margin and our eCommerce initiatives all together position us well for growth and expanding market share, with this driving greater shareholder value over the long term.”
Fiscal 2024 Financial Summary
Total net revenue increased
eCommerce revenue increased
Wholesale revenue totaled
Gross profit increased
Gross margin was
Total operating expenses decreased
Net loss improved to
Adjusted EBITDA was negative
Cash, cash equivalents and restricted cash totaled
About Perfect Moment
Founded in 1984 in the mountains of
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 2010, 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 the 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.
Important Cautions Regarding Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the
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 CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME/(LOSS) (Amounts in thousands, except share and per share data) |
||||||||
|
|
Year Ended March 31, 2024 |
|
Year Ended March 31, 2023 |
||||
|
|
|
|
|
|
|
||
Revenue, net |
|
|
|
|
|
|
|
|
Wholesale |
|
$ |
14,060 |
|
|
$ |
14,888 |
|
Ecommerce |
|
|
10,383 |
|
|
|
8,550 |
|
Total Revenue, net |
|
|
24,443 |
|
|
|
23,438 |
|
|
|
|
|
|
|
|
|
|
Cost of goods sold |
|
|
15,212 |
|
|
|
14,682 |
|
Gross profit |
|
|
9,231 |
|
|
|
8,756 |
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
Selling, general and administrative expenses |
|
|
12,122 |
|
|
|
12,369 |
|
Marketing and advertising expenses |
|
|
4,784 |
|
|
|
5,012 |
|
Total operating expenses |
|
|
16,906 |
|
|
|
17,381 |
|
|
|
|
|
|
|
|
|
|
Loss from operations |
|
|
(7,675 |
) |
|
|
(8,625 |
) |
|
|
|
|
|
|
|
|
|
Other income (expense), net |
|
|
|
|
|
|
|
|
Interest expense |
|
|
(1,311 |
) |
|
|
(1,840 |
) |
Foreign currency transactions gains |
|
|
264 |
|
|
39 |
||
Total other income (expense), net |
|
|
(1,047 |
) |
|
|
(1,801 |
) |
|
|
|
|
|
|
|
|
|
Loss before income tax provision |
|
|
(8,722 |
) |
|
|
(10,426 |
) |
|
|
|
|
|
|
|
|
|
Income tax provision |
|
|
- |
|
|
|
121 |
|
|
|
|
|
|
|
|
|
|
Net Loss |
|
|
(8,722 |
) |
|
|
(10,305 |
) |
|
|
|
|
|
|
|
|
|
Other comprehensive (losses) gains |
|
|
|
|
|
|
|
|
Foreign currency translation (loss) gains |
|
|
(288 |
) |
|
|
303 |
|
|
|
|
|
|
|
|
|
|
Comprehensive loss |
|
$ |
(9,010 |
) |
|
$ |
(10,002 |
) |
|
|
|
|
|
|
|
|
|
Basic and diluted loss per share |
|
$ |
(1.34 |
) |
|
$ |
(2.16 |
) |
Basic and Diluted weighted-average number of shares outstanding |
|
|
6,518,960 |
|
|
|
4,767,777 |
|
PERFECT MOMENT LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Amounts in thousands, except share per share data) |
||||||||
|
|
March 31, 2024 |
|
March 31, 2023 |
||||
|
|
|
|
|
|
|
||
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
7,910 |
|
|
$ |
4,712 |
|
Accounts receivable, net |
|
|
1,035 |
|
|
|
997 |
|
Inventories, net |
|
|
2,230 |
|
|
|
2,262 |
|
Prepaid and other current assets |
|
|
742 |
|
|
|
708 |
|
Total current assets |
|
$ |
11,917 |
|
|
$ |
8,679 |
|
|
|
|
|
|
|
|
|
|
Operating lease right-of-use assets |
|
|
143 |
|
|
|
297 |
|
Property and equipment, net |
|
|
502 |
|
|
|
833 |
|
Other non-current assets |
|
|
47 |
|
|
|
12 |
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
12,609 |
|
|
$ |
9,821 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Trade payables |
|
$ |
1,584 |
|
|
$ |
1,289 |
|
Accrued expenses |
|
|
2,697 |
|
|
|
1,390 |
|
Trade finance facility |
|
|
- |
|
|
|
26 |
|
Convertible debt obligations |
|
|
- |
|
|
|
10,770 |
|
Operating lease liability, current |
|
|
101 |
|
|
|
299 |
|
Unearned revenue |
|
|
420 |
|
|
|
180 |
|
|
|
|
|
|
|
|
|
|
Total current liabilities |
|
$ |
4,802 |
|
|
$ |
13,954 |
|
|
|
|
|
|
|
|
|
|
Long Term liabilities: |
|
|
|
|
|
|
|
|
Operating lease liability, non-current |
|
|
44 |
|
|
|
8 |
|
Total liabilities |
|
$ |
4,846 |
|
|
$ |
13,962 |
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
Stockholders’ equity (deficit) |
|
|
|
|
|
|
|
|
Common stock, |
|
$ |
1 |
|
|
$ |
- |
|
Series A and Series B convertible preferred stock; |
|
|
- |
|
|
|
1 |
|
Additional paid-in-capital |
|
|
56,824 |
|
|
|
35,910 |
|
Accumulated other comprehensive (loss)/income |
|
|
(85 |
) |
|
|
203 |
|
Accumulated deficit |
|
|
(48,977 |
) |
|
|
(40,255 |
) |
|
|
|
|
|
|
|
|
|
Total stockholders’ equity (deficit) |
|
$ |
7,763 |
|
|
$ |
(4,141 |
) |
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders’ equity (deficit) |
|
$ |
12,609 |
|
|
$ |
9,821 |
|
Use of Non-GAAP Measures
In addition to the company’s results under generally accepted accounted principles (“GAAP”), it presents 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. The company defines adjusted EBITDA as net income (loss), plus interest expense, depreciation and amortization and stock-based compensation.
Management considers its core operating performance to be that which its managers can affect in any particular period through their management of the resources that affect the company’s underlying revenue and profit generating operations in that period. Non-GAAP adjustments to the company’s results prepared in accordance with GAAP are itemized below. You are encouraged to evaluate these adjustments and the reasons the company considers them appropriate for supplemental analysis. In evaluating Adjusted EBITDA, you should be aware that in the future the company may incur expenses that are the same as or similar to some of the adjustments in this presentation. The company’s presentation of adjusted EBITDA should not be construed as an inference that the company’s future results will be unaffected by unusual or non-recurring items.
|
|
For the Years ended |
||||||
|
|
March 31, 2024 |
|
March 31, 2023 |
||||
|
|
|
|
|
|
|
||
Net income / (loss), as reported |
|
$ |
(8,722 |
) |
|
$ |
(10,305 |
) |
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
Interest expense |
|
|
1,311 |
|
|
|
1,840 |
|
Stock compensation expense |
|
|
739 |
|
|
|
4,036 |
|
Amortization of stock-based marketing services |
|
|
185 |
|
|
|
1,483 |
|
Depreciation and amortization |
|
|
555 |
|
|
|
547 |
|
Income tax benefit |
|
|
- |
|
|
|
(121 |
) |
Total EBITDA adjustments |
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
$ |
(5,932 |
) |
|
$ |
(2,520 |
) |
The company presents adjusted EBITDA because the company believes it assists investors and analysts in comparing its performance across reporting periods on a consistent basis by excluding items that the company does not believe are indicative of its core operating performance. In addition, the company uses adjusted EBITDA in developing its internal budgets, forecasts, and strategic plan; in analyzing the effectiveness of the company’s business strategies in evaluating potential acquisitions; and in making compensation decisions and in communications with its board of directors concerning the company’s financial performance. Adjusted EBITDA has limitations as an analytical tool, which includes, among others, the following:
- Adjusted EBITDA does not reflect the company’s cash expenditures, or future requirements, for capital expenditures or contractual commitments;
- Adjusted EBITDA does not reflect changes in, or cash requirements for, the company’s working capital needs;
- Adjusted EBITDA does not reflect future interest expense, or the cash requirements necessary to service interest or principal payments, on the company’s 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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240630289478/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
Source: Perfect Moment Ltd.
FAQ
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