Perfect Moment Ltd. Reports 16% Revenue Decline and Increased Net Loss for Nine Months Ending December 31, 2024

Perfect Moment Ltd. reported a decline in financial performance for the nine months ending December 31, 2024, with total net revenue of $16.5 million, down 16% from $19.6 million in the same period the previous year. The decrease was primarily attributed to the termination of a collaboration with Hugo Boss, which accounted for $3.2 million in revenue. For the three months ending December 31, 2024, revenue also fell by 8% to $11.7 million, compared to $12.7 million in the prior year. The company experienced a net loss of $8.6 million for the nine-month period, significantly higher than the $3.0 million loss reported in the same period last year.

The company's gross profit for the nine months was $8.8 million, down from $10.4 million, while gross margins improved slightly to 54% from 53%. The increase in gross margin was attributed to ongoing margin expansion projects, including the opening of a new U.S. distribution center, which is expected to reduce duty costs and improve operational efficiency. However, selling, general, and administrative expenses surged by 45% to $13.9 million, driven by increased stock compensation, legal fees, and costs associated with becoming a public company.

Operationally, Perfect Moment has focused on enhancing its direct-to-consumer strategy, which includes expanding its e-commerce presence and opening seasonal pop-up stores in key locations. The company reported retail revenue of $516,000 from its New York and London pop-up locations. Additionally, the brand's social media following increased by 19.2% year-over-year, indicating a growing engagement with its customer base. The company is also exploring international expansion, particularly in China, where it has begun testing the market through local partnerships.

Despite these strategic initiatives, Perfect Moment faces significant challenges, including an accumulated deficit of $57.6 million and ongoing liquidity concerns. The company has indicated that it may need to seek additional financing to support its operations and growth plans. Management has outlined several strategies to improve cash flow, including cost-reduction initiatives and exploring long-term funding options. The outlook remains cautious, with the company acknowledging substantial doubt about its ability to continue as a going concern without generating sufficient cash flows or securing additional capital.