Maison Solutions Inc. Reports Revenue Decline and Net Loss for Quarter Ended July 31, 2025

Maison Solutions Inc. reported a decline in financial performance for the three months ended July 31, 2025, with revenues of $27.2 million, down 3.6% from $28.2 million in the same period last year. The decrease was attributed to reduced sales across its California-based supermarkets, particularly at Maison Monterey Park and Maison San Gabriel, which saw declines of $0.8 million and $0.3 million, respectively. The company also closed its Maison El Monte store in June 2025, which contributed to a significant drop in revenue from that location, from $1.5 million in the previous year to $753,579.

The company's gross profit fell to $6.6 million, a decrease of 19.4% compared to $8.1 million in the prior year, resulting in a gross margin of 24.2%, down from 28.9%. This decline was primarily due to increased costs of goods sold, which rose by 2.8% to $20.6 million, driven by inflationary pressures. Operating expenses also increased by 5.1% to $6.4 million, largely due to higher selling expenses, which included payroll and merchant service charges.

Maison Solutions reported a net loss of $1.5 million for the quarter, a stark contrast to a net income of $700,908 in the same period last year. The loss from continuing operations was $784,798, significantly impacted by increased interest expenses and investment losses, particularly an $848,493 impairment charge related to its investment in HKGF Market of Arcadia. The company’s accumulated deficit grew to $3.2 million as of July 31, 2025.

Operationally, Maison Solutions had approximately 333 employees, including those from its newly acquired subsidiary, Lee Lee. The company continues to focus on expanding its footprint, having recently incorporated a wholly-owned subsidiary in Arizona and acquired Lee Lee International Supermarkets. However, the closure of the Maison El Monte store reflects a strategic decision to enhance profitability and streamline operations.

Looking ahead, Maison Solutions aims to strengthen its sales force, enhance marketing efforts, and explore additional acquisitions to drive revenue growth. The company believes its current cash reserves and operating cash flows will support its operations for at least the next 12 months, although it may seek additional funding if necessary. The management remains optimistic about future growth opportunities despite the challenges faced in the current fiscal period.