Perfect Moment Reports Fiscal Q1 2027 Results
Fiscal Q1 2027 Financial Highlights
-
Fiscal Q1 is the Company’s seasonally lowest quarter, representing approximately
6% of fiscal 2026 annual revenue, with sales in the period driven by swimwear and activewear. -
Revenue declined
21.9% to$1.2 million $1.5 million -
Wholesale revenue increased
268% to$563,000 $153,000 -
Gross margin decreased 580 basis points to
54.5% compared to60.3% in Q1 FY26. -
Total operating expenses decreased
1.4% to$3.89 million $3.94 million -
Loss from operations increased by approximately
$205,000 $3.3 million $3.1 million -
Net loss improved by approximately
$286,000 $3.5 million $(0.07) $3.8 million $(0.21) -
Adjusted EBITDA loss increased by approximately
$564,000 $3.1 million $2.6 million -
Raised
$2.0 million $0.7 million $4.0 million $10.0 million
Management Commentary
“Our first fiscal quarter is seasonally our lowest, driven by swimwear and activewear ahead of the winter season, and this year it also reflected a deliberate reset as we transition Perfect Moment to a full-price luxury brand model,” said Jane Gottschalk, Co-Founder, Creative Director and President of Perfect Moment. “Our summer activation began later in the quarter than planned, but sales strengthened through June as our campaigns took hold, and the response to the brand – from wholesale partners in particular – has been very encouraging. Our energy is now firmly focused on September: the launch of our Fall/Winter 2026 collection, a step-up in brand activation, and a sharper eCommerce and marketing engine to convert the brand’s momentum into full-price sales through our peak season.”
Chath Weerasinghe, Chief Financial and Operating Officer of Perfect Moment, commented: “In Q1, the Company continued to execute on its transformation, with a focus on strengthening its technology and operating infrastructure to support future scale and disciplined, sustainable growth. Additionally, total operating expenses remained essentially flat year-over-year, while we continued to make targeted investments in agency support and event-based growth activations. Together with significantly lower financing costs, this contributed to a further narrowing of our net loss.
“We also strengthened our balance sheet during the quarter, securing
Fiscal Q1 2027 Financial Summary
Reflecting the seasonality of the business, the fiscal first quarter is historically the lowest revenue quarter. In fiscal 2026, the first quarter represented approximately
First quarter total net revenue decreased
First quarter eCommerce net revenue decreased
First quarter wholesale revenue increased
First quarter gross profit decreased to
First quarter total operating expenses decreased
First quarter loss from operations increased by approximately
First quarter net loss was
First quarter adjusted EBITDA loss increased by approximately
Balance Sheet Highlights
Cash and cash equivalents were
Inventory was
About Perfect Moment Ltd.
Founded in Chamonix, France, Perfect Moment is a luxury outerwear and activewear brand that merges alpine heritage with fashion-forward performance. Known for its technical excellence, bold design, and versatile pieces that transition seamlessly from slopes to city, the brand is worn by athletes, tastemakers, and celebrities worldwide. Perfect Moment is traded on the OTCQB under the ticker symbol PMNT. Learn more at www.perfectmoment.com.
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 sections titled “Risk Factors” in our Form 10-K for the fiscal year ended March 31, 2026, 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.
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
|
|
Three months
|
||||
Revenue, net |
|
$ |
1,150 |
|
|
$ |
1,472 |
|
Cost of sales |
|
|
523 |
|
|
|
583 |
|
Gross profit |
|
|
627 |
|
|
|
889 |
|
Operating expenses: |
|
|
|
|
|
|
||
Selling, general and administrative expenses |
|
|
3,380 |
|
|
|
3,415 |
|
Marketing and advertising expenses |
|
|
507 |
|
|
|
529 |
|
Total operating expenses |
|
|
3,887 |
|
|
|
3,944 |
|
Loss from operations |
|
|
(3,260 |
) |
|
|
(3,055 |
) |
Other income (expense), net |
|
|
|
|
|
|
||
Interest expense and finance costs1 |
|
|
(237 |
) |
|
|
(779 |
) |
Foreign currency transactions (loss) gain |
|
|
(36 |
) |
|
|
15 |
|
Total other expense, net |
|
|
(273 |
) |
|
|
(764 |
) |
Net loss |
|
|
(3,533 |
) |
|
|
(3,819 |
) |
Dividends on Series AA Convertible Preferred Stock |
|
|
- |
|
|
|
(159 |
) |
Net loss attributable to common stockholders |
|
$ |
(3,533 |
) |
|
$ |
(3,978 |
) |
Basic and diluted loss per share attributable to common stockholders |
|
$ |
(0.07 |
) |
|
$ |
(0.21 |
) |
Basic and diluted weighted-average number of shares outstanding |
|
|
50,617,198 |
|
|
|
19,328,778 |
|
Other comprehensive losses: |
|
|
|
|
|
|
||
Net loss |
|
$ |
(3,533 |
) |
|
|
(3,819 |
) |
Foreign currency translation loss |
|
|
(22 |
) |
|
|
(133 |
) |
Comprehensive loss |
|
$ |
(3,555 |
) |
|
$ |
(3,952 |
) |
1 Interest expenses and finance costs include |
||||||||
PERFECT MOMENT LTD. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands, except share and per share data) |
||||||||
|
|
June 30, 2026 |
|
March 31, 2026 |
||||
|
|
unaudited |
|
|
||||
ASSETS |
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
707 |
|
|
$ |
1,151 |
|
Accounts receivable, net |
|
|
1,114 |
|
|
|
2,146 |
|
Inventories, net |
|
|
3,669 |
|
|
|
3,897 |
|
Prepaid and other current assets |
|
|
2,809 |
|
|
|
2,950 |
|
Total current assets |
|
|
8,299 |
|
|
|
10,144 |
|
Long term assets: |
|
|
|
|
|
|
||
Operating lease right-of-use assets |
|
|
962 |
|
|
|
1,003 |
|
Property and equipment, net |
|
|
505 |
|
|
|
499 |
|
Other non-current assets, net |
|
|
469 |
|
|
|
582 |
|
Total assets |
|
$ |
10,235 |
|
|
$ |
12,228 |
|
LIABILITIES AND STOCKHOLDERS’ DEFICIT |
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Trade payables |
|
$ |
2,524 |
|
|
$ |
3,601 |
|
Accrued expenses |
|
|
2,244 |
|
|
|
2,859 |
|
Operating lease liabilities, current |
|
|
107 |
|
|
|
37 |
|
Deferred revenue |
|
|
613 |
|
|
|
245 |
|
Total current liabilities |
|
|
5,488 |
|
|
|
6,742 |
|
Long term liabilities: |
|
|
|
|
|
|
||
Line of credit from related parties, net |
|
|
5,754 |
|
|
|
5,140 |
|
Operating lease obligations, long-term portion |
|
|
987 |
|
|
|
1,032 |
|
Total liabilities |
|
|
12,229 |
|
|
|
12,914 |
|
Commitments and contingencies (see Note 10) |
|
|
- |
|
|
|
- |
|
Stockholders’ deficit: |
|
|
|
|
|
|
||
Common stock; |
|
|
5 |
|
|
|
4 |
|
Additional paid-in capital |
|
|
73,909 |
|
|
|
71,663 |
|
Accumulated other comprehensive loss |
|
|
(328 |
) |
|
|
(306 |
) |
Accumulated deficit |
|
|
(75,580 |
) |
|
|
(72,047 |
) |
Total stockholders’ deficit |
|
|
(1,994 |
) |
|
|
(686 |
) |
Total liabilities and stockholders’ deficit |
|
$ |
10,235 |
|
|
$ |
12,228 |
|
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, stock-based compensation, financing costs and changes in fair value of derivative liability.
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.
Adjusted EBITDA
|
|
Three months
|
|
Three months
|
||||
Net loss, as reported |
|
$ |
(3,533 |
) |
|
$ |
(3,819 |
) |
Adjustments: |
|
|
|
|
|
|
||
Interest expense |
|
|
237 |
|
|
|
779 |
|
Stock compensation expense |
|
|
67 |
|
|
|
134 |
|
Amortization of stock-based services |
|
|
25 |
|
|
|
199 |
|
Depreciation and amortization |
|
|
64 |
|
|
|
131 |
|
Adjusted EBITDA |
|
$ |
(3,140 |
) |
|
$ |
(2,576 |
) |
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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260817081150/en/
Investor Relations Contact:
Gateway Group
Cody Slach, Greg Robles
949.574.3860
PMNT@gateway-grp.com
Press Contact:
press@perfectmoment.com
Source: Perfect Moment Ltd.