Perfect Moment Reports Fiscal Q3 2024 Results
- None.
- None.
Insights
The reported net income of $1.2 million for fiscal Q3, alongside a 23% increase in eCommerce sales to $3.8 million, signifies a healthy growth trajectory for Perfect Moment Ltd., particularly in the digital commerce sector. The rise in eCommerce is indicative of effective online strategies and consumer preference shifts. The basic and diluted earnings per share figures, $0.23 and $0.08 respectively, offer a snapshot into the company's profitability and can be of interest to shareholders assessing per-share value.
Furthermore, the cash position post-IPO, with no long-term debt, presents a robust financial standing that can support aggressive growth strategies. The gross margin improvement to 39.0% is a positive indicator of cost management and pricing strategy effectiveness. However, investors should monitor whether these margins can be maintained as the company scales up its operations.
The increase in brand awareness, partly attributed to 'major media wins', suggests that Perfect Moment Ltd. is effectively leveraging media channels to enhance its market presence. This is likely translating into direct financial gains, as seen with the record nine-month revenue of $19.6 million. The reported growth in social media following, especially on platforms like Instagram, Facebook and TikTok, reflects the brand's resonance with a digital-savvy consumer base, which can be pivotal for long-term engagement and customer retention.
Additionally, the strategic product line expansion, supported by a strengthened balance sheet, could cater to evolving consumer demands and potentially open up new market segments. However, it is important to assess the sustainability of these growth rates and the ROI on marketing spend, especially as competition in the luxury lifestyle brand space remains intense.
The 23% surge in eCommerce sales underscores the increasing importance of a strong online retail presence for fashion and lifestyle brands. Perfect Moment Ltd.'s performance in this area suggests that they are capitalizing on the trend of consumers shopping more online, especially for luxury goods. The company's ability to grow its eCommerce revenue consistently could indicate a competitive edge in digital marketing, website user experience and online customer service.
It is also worth noting the 28% increase in eCommerce sales contributing to the nine-month revenue, which highlights the strategic importance of the digital channel in driving sales. The brand's focus on combining fashion with technical performance aligns with a growing consumer trend towards functional yet stylish clothing, which could continue to drive online sales. However, as the digital landscape evolves, ongoing investment in technology and user experience will be essential to maintain this growth momentum.
-
Fiscal Q3 net income of
$1.2 million $0.23 $0.08 23% to record$3.8 million -
Record fiscal nine-month revenue at
$19.6 million - Strengthened balance sheet from recent IPO, enabling acceleration in marketing, strategic product line expansion and other growth initiatives.
Fiscal Q3 2024 Financial Highlights
-
Total revenue of
$12.7 million 23% to record$3.8 million -
Net income totaled
$1.2 million $0.23 $0.08 -
Adjusted EBITDA, a non-GAAP metric, was
$1.7 million -
Cash, cash equivalents and restricted cash totaled
$3.5 million $9.8 million
Fiscal Nine Months 2024 Financial Highlights
-
Total revenue up
1% to a record$19.6 million 28% to record$5.8 million -
Gross margin increased to
39.0% from36.6% in the same year-ago period. -
Total operating expenses decreased
24% to$9.9 million
Fiscal Q3 Operational Highlights
-
Perfect Moment total followers across social media platforms, including Instagram, Facebook and TikTok, exceeded 343,000 by quarter-end up nearly
20% since the end of the same year-ago quarter —and currently totals more than 379,000 making Perfect Moment one of the world’s most followed luxury ski brands. -
The total social audience reached by content posted by
U.S. andU.K. key opinion leaders (KOLs) about Perfect Moment was more than 166.8 million during the period. 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 in theU.S. andU.K. (see company’s full definition of KOLs and data sources, below.) - The total number of global unique visitors per month (UVPM) reached more than 4 billion during the quarter. This is the combined sum of UVPM reached by all global digital media coverage achieved during the quarter.
-
Hosted several brand events across the
U.S. andEurope that included top fashion models and social media influencers with collective reach of more than 66.8 million followers. - 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.
- Appointed as CFO Jeff Clayborne, a highly experienced finance professional with a record of driving growth and profitability for start-ups to Fortune 100 companies, including Walt Disney and Universal Music Group. He brings more than 25 years of experience in finance, business development, M&A and accounting after beginning his career at McGladrey & Pullen and KPMG.
- Significantly strengthened corporate governance with the appointment to the board of directors Berndt Hauptkorn, president of Chanel Europe; and Andre Keijsers, who brings more than 25 years of capital markets, M&A and finance experience, including at a multi-billion-dollar Nasdaq-traded company.
- Engaged logistics partner Global-E to support better DTC customer experience, sales growth and gross margin improvement.
Q3 Major Media Wins
-
Received broad media coverage during the quarter, including features in US and British Vogue, Condé Nast Traveler, Esquire, Town & Country, Travel & Leisure, Evening Standard, WWD, GQ and Rolling Stone, and accolades from Harper’s BAZAAR, Forbes, Esquire, NY Magazine, ELLE, Glamour, and Haute Living Magazine (LA and
Miami ). -
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 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
On February 8, 2024, the company completed an IPO of common stock that generated net proceeds of
Management Commentary
“Our fiscal third quarter represented a special transitional period for Perfect Moment, as we prepared for our NYSE American IPO, onboarded new talent and senior team leaders, and increased our focus on eCommerce sales,” commented Perfect Moment CEO, Mark Buckley.
“Our results for the quarter reflect this transitional period, particularly with the strong growth in eCommerce. Improved production timelines resulted in substantial amount of wholesale shipments typically occurring in the third quarter being accelerated into the second. While it made for a strong second quarter, as a result third quarter revenues were lower compared to the year ago.
“While our nine months revenues were strong, reaching a record for the period, the year-over-year growth was marginal since it compares to an unusual period where we experienced a strong elevation in sales due to the ‘covid rebound in FY2024.’
“To be sure, our sales and brand awareness has been strengthening over the long term, with strong growth over the last three reported fiscal years. Black Friday last November was our biggest yet, generating
“Looking to the new fiscal year that begins in April, we are broadening our lifestyle offerings with the launch of a summer product line that we did not have last year. We are also adding a new direct-to-consumer ‘capsule’ collection for the autumn season. With these new lines, combined with our increasing focus on lifestyle offerings, eCommerce and other planned direct-to-consumer and retail initiatives, we look to lessen the predominate effect of our sales for the winter season and see smoother quarterly results over the long term.
“Also underpinning our positive outlook for the new year is our much stronger financial resources, including strong cash position and a debt-free balance sheet— all thanks to the generous participation of our valued new shareholders in our IPO.
“We are now fully focused on executing our product strategies. We've just shot our new autumn/winter 2024 collection in
“We are also exploring a channel expansion into retail, so more customers can experience our products in real life. We anticipate this will help us gain greater market share, particularly in the
“We have developed a rich marketing eco-system across our entire marketing funnel. We have continued to experience strong growth in social media followers, and especially in the number of celebrities, influencers, models, publications, and fashion industry notables who have organically posted about our brand. We believe we have attracted such a loyal following because of our unique style and how we uniquely combine luxury with technical performance.
“We plan to further leverage our strengthening social media presence and relationships with influencers, and further advance our partnership strategies to drive growth in sales and market share. We address an expanding market for luxury outerwear that is projected to grow at a healthy
“Given these strong industry tailwinds, along with our growing brand awareness, competitive positioning and growth initiatives, we are well positioned to continue to deliver exceptional value to our customers, partners and shareholders in 2025 and beyond.”
Fiscal Q3 Financial Summary
Total revenue decreased
Wholesale revenue totaled
Gross profit decreased
Gross margin was
Total operating expenses increased
Net income totaled
Adjusted EBITDA was
Cash, cash equivalents and restricted cash totaled
Fiscal First Nine Months 2023 Financial Summary
Total revenue increased
eCommerce revenue increased
Wholesale revenue decreased
Gross profit increased
Total operating expenses decreased
Net loss totaled
Adjusted EBITDA was a loss of
About Perfect Moment
Perfect Moment is a luxury lifestyle brand that combines fashion and technical performance for a range of skiwear, outerwear, swimwear and activewear. Perfect Moment creates apparel and products that feature a unique combination of fashion, form, function and fun for women, men and children.
The idea for the Perfect Moment brand was born in
His designs – combining high performance materials with daring prints and colors – were inspired by his team of free-ride skiers and surfers. Today, the brand continues to draw on its rich heritage of performance garments and statement designs. Retro-inspired vivid and bold color palettes complement technical fabrics to deliver fashion, form, function and fun for women, men and children.
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. 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 KOLs, 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.
Industry Statistics
Footnote 1: The industry statistics referenced in this press release are from the Luxury Outerwear Market Latest Research Report (2023-2030) as published by Research World here: www.linkedin.com/pulse/global-luxury-outerwear-market-2023-2030-know-largest.
PERFECT MOMENT LTD AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME/(LOSS) (Amounts in thousands, except share and per share data) (Unaudited) |
||||||||||||||||
|
|
Three Months Ended December 31, 2023 |
|
|
Three Months Ended December 31, 2022 |
|
|
Nine Months Ended December 31, 2023 |
|
|
Nine Months Ended December 31, 2022 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
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|
||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale |
|
$ |
8,974 |
|
|
$ |
13,101 |
|
|
$ |
13,827 |
|
|
$ |
14,917 |
|
Ecommerce |
|
|
3,752 |
|
|
|
3,045 |
|
|
|
5,775 |
|
|
|
4,509 |
|
Total Revenue |
|
|
12,726 |
|
|
|
16,146 |
|
|
|
19,602 |
|
|
|
19,426 |
|
Cost of goods sold |
|
|
(7,860 |
) |
|
|
(9,944 |
) |
|
|
(11,966 |
) |
|
|
(12,325 |
) |
Gross Profit |
|
|
4,866 |
|
|
|
6,202 |
|
|
|
7,636 |
|
|
|
7,101 |
|
Operating Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses |
|
|
(2,659 |
) |
|
|
(2,442 |
) |
|
|
(6,839 |
) |
|
|
(9,762 |
) |
Marketing and advertising expenses |
|
|
(1,479 |
) |
|
|
(1,440 |
) |
|
|
(3,081 |
) |
|
|
(3,309 |
) |
Total operating expenses |
|
|
(4,138 |
) |
|
|
(3,882 |
) |
|
|
(9,920 |
) |
|
|
(13,071 |
) |
Gain/(loss) from operations |
|
|
728 |
|
|
|
2,320 |
|
|
|
(2,284 |
) |
|
|
(5,970 |
) |
Interest expense |
|
|
(403 |
) |
|
|
(489 |
) |
|
|
(1,169 |
) |
|
|
(1,411 |
) |
Foreign currency transaction gains/(losses) |
|
|
879 |
|
|
|
1,436 |
|
|
|
473 |
|
|
|
(457 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income/(loss) |
|
|
1,204 |
|
|
|
3,267 |
|
|
|
(2,980 |
) |
|
|
(7,838 |
) |
Other comprehensive gains/(losses) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation (losses)/gains |
|
|
(758 |
) |
|
|
(923 |
) |
|
|
(407 |
) |
|
|
645 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income/(loss) |
|
$ |
446 |
|
|
$ |
2,344 |
|
|
$ |
(3,387 |
) |
|
$ |
(7,193 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income/(loss) per share to common stockholders - basic |
|
$ |
0.23 |
|
|
$ |
0.68 |
|
|
$ |
(0.58 |
) |
|
$ |
(1.64 |
) |
Net income/(loss) per share to common stockholders - diluted |
|
$ |
0.08 |
|
|
$ |
0.24 |
|
|
$ |
(0.58 |
) |
|
$ |
(1.64 |
) |
Weighted average number of common shares outstanding - basic |
|
|
5,233,402 |
|
|
|
4,824,352 |
|
|
|
5,133,187 |
|
|
|
4,781,897 |
|
Weighted average number of common shares outstanding - diluted |
|
|
14,236,268 |
|
|
|
13,778,458 |
|
|
|
5,133,187 |
|
|
|
4,781,897 |
|
PERFECT MOMENT LTD. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands, except share and per share data) |
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|
December 31,
|
|
|
March 31,
|
|
||
|
|
unaudited |
|
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|
||
Assets |
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
3,370 |
|
|
$ |
4,712 |
|
Restricted cash |
|
|
173 |
|
|
|
- |
|
Accounts receivable, net |
|
|
3,487 |
|
|
|
997 |
|
Inventories, net |
|
|
3,750 |
|
|
|
2,262 |
|
Prepaid and other current assets |
|
|
679 |
|
|
|
708 |
|
Total current assets |
|
|
11,459 |
|
|
|
8,679 |
|
Non-current assets: |
|
|
|
|
|
|
|
|
Property and equipment, net |
|
|
571 |
|
|
|
833 |
|
Operating lease right of use asset |
|
|
80 |
|
|
|
297 |
|
Deferred offering costs |
|
|
923 |
|
|
|
- |
|
Other non-current assets |
|
|
51 |
|
|
|
12 |
|
Total non-current assets |
|
|
1,625 |
|
|
|
1,142 |
|
Total Assets |
|
$ |
13,084 |
|
|
$ |
9,821 |
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders’ Deficit |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Trade payables |
|
$ |
2,068 |
|
|
$ |
1,289 |
|
Accrued expenses |
|
|
2,900 |
|
|
|
1,390 |
|
Trade finance facility |
|
|
999 |
|
|
|
26 |
|
Convertible debt obligations |
|
|
11,862 |
|
|
|
10,770 |
|
Operating lease obligations, current portion |
|
|
66 |
|
|
|
299 |
|
Unearned revenue |
|
|
505 |
|
|
|
180 |
|
Total current liabilities |
|
|
18,400 |
|
|
|
13,954 |
|
Non-current liabilities: |
|
|
|
|
|
|
|
|
Operating lease obligations, long-term portion |
|
|
15 |
|
|
|
8 |
|
Total non-current liabilities |
|
|
15 |
|
|
|
8 |
|
Total Liabilities |
|
|
18,415 |
|
|
|
13,962 |
|
|
|
|
|
|
|
|
|
|
Shareholders’ deficit: |
|
|
|
|
|
|
|
|
Common stock; |
|
|
- |
|
|
|
- |
|
Series A and Series B convertible preferred stock; |
|
|
1 |
|
|
|
1 |
|
Additional paid-in capital |
|
|
38,107 |
|
|
|
35,910 |
|
Accumulated other comprehensive (loss)/income |
|
|
(204 |
) |
|
|
203 |
|
Accumulated deficit |
|
|
(43,235 |
) |
|
|
(40,255 |
) |
Total shareholders’ deficit |
|
|
(5,331 |
) |
|
|
(4,141 |
) |
Total Liabilities and Shareholders’ Deficit |
|
$ |
13,084 |
|
|
$ |
9,821 |
|
Pro Forma Balance Sheet Information At December 31, 2023 (Amounts in thousands, except share and per share data) (Unaudited) |
||||||||
|
|
Actual |
|
|
Pro Forma |
|
||
|
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|
|
|
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|
||
Assets |
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
3,370 |
|
|
$ |
9,796 |
|
Restricted cash |
|
|
173 |
|
|
|
173 |
|
Other current assets |
|
|
7,916 |
|
|
|
7,916 |
|
Total current assets |
|
|
11,459 |
|
|
|
17,885 |
|
Deferred offering costs |
|
|
923 |
|
|
|
- |
|
Other non-current assets |
|
|
702 |
|
|
|
702 |
|
Total non-current assets |
|
|
1,625 |
|
|
|
702 |
|
Total Assets |
|
$ |
13,084 |
|
|
$ |
18,587 |
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders’ (Deficit)/Equity |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Trade payables |
|
$ |
2,068 |
|
|
$ |
2,068 |
|
Accrued expenses |
|
|
2,900 |
|
|
|
2,900 |
|
Trade finance facility |
|
|
999 |
|
|
|
999 |
|
Convertible debt obligations |
|
|
11,862 |
|
|
|
- |
|
Operating lease obligations, current portion |
|
|
66 |
|
|
|
66 |
|
Unearned revenue |
|
|
505 |
|
|
|
505 |
|
Total current liabilities |
|
|
18,400 |
|
|
|
6,538 |
|
Non-current liabilities: |
|
|
|
|
|
|
|
|
Operating lease obligations, long-term portion |
|
|
15 |
|
|
|
15 |
|
Total non-current liabilities |
|
|
15 |
|
|
|
15 |
|
Total Liabilities |
|
|
18,415 |
|
|
|
6,553 |
|
|
|
|
|
|
|
|
|
|
Shareholders’ (deficit)/equity: |
|
|
|
|
|
|
|
|
Common shares; |
|
|
- |
|
|
|
1 |
|
Series A and Series B convertible preference shares; |
|
|
1 |
|
|
|
- |
|
Additional paid-in capital |
|
|
38,107 |
|
|
|
55,472 |
|
Accumulated other comprehensive income |
|
|
(204 |
) |
|
|
(204 |
) |
Accumulated deficit |
|
|
(43,235 |
) |
|
|
(43,235 |
) |
Total shareholders’ (deficit)/equity |
|
|
(5,331 |
) |
|
|
12,034 |
|
Total Liabilities and Shareholders’ (Deficit)/Equity |
|
$ |
13,084 |
|
|
$ |
18,587 |
|
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 the company’s 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, stock-based compensation, financing costs and changes in fair value of derivative liability.
Management considers the company’s 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 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 we 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 its future results will be unaffected by unusual or non-recurring items.
|
|
For the Three Months Ended |
|
|
For the Nine months ended |
|
||||||||||
|
|
December 31, 2023 |
|
|
December 31, 2022 |
|
|
December 31, 2023 |
|
|
December 31, 2022 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income / (loss), as reported |
|
$ |
1,204 |
|
|
$ |
3,267 |
|
|
$ |
(2,980 |
) |
|
$ |
(7,838 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
403 |
|
|
|
489 |
|
|
|
1,169 |
|
|
|
1,411 |
|
Stock compensation expense |
|
|
4 |
|
|
|
(191 |
) |
|
|
18 |
|
|
|
3,890 |
|
Amortization of pre-paid marketing |
|
|
- |
|
|
|
371 |
|
|
|
185 |
|
|
|
1,113 |
|
Depreciation and amortization |
|
|
138 |
|
|
|
138 |
|
|
|
437 |
|
|
|
408 |
|
Income tax benefit |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Total EBITDA adjustments |
|
|
545 |
|
|
|
807 |
|
|
|
1,809 |
|
|
|
6,822 |
|
Adjusted EBITDA |
|
$ |
1,749 |
|
|
$ |
4,074 |
|
|
$ |
(1,171 |
) |
|
$ |
(1,016 |
) |
The company presents adjusted EBITDA because it believes it assists investors and analysts in comparing the company’s 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/20240325935685/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.
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