Perfect Moment Ltd. reported a total revenue of $12.7 million for the three months ended December 31, 2023, a decrease of 21% compared to $16.1 million for the same period in 2022. The decline was primarily attributed to a significant amount of wholesale revenue recognized in the previous quarter due to early shipments of fall and winter collections. For the nine months ended December 31, 2023, total revenue increased slightly to $19.6 million from $19.4 million in the prior year, driven by a 28% increase in e-commerce sales, which reached $5.8 million, offsetting a 7% decline in wholesale revenue.
The company's gross profit for the three months ended December 31, 2023, was $4.9 million, down from $6.2 million in the same quarter of 2022, reflecting a gross margin of 38.2%. For the nine-month period, gross profit increased to $7.6 million, with a gross margin of 39%, up from 36.6% in the previous year. The improvement in gross margin was attributed to reduced discounting and the addition of Global-e as a logistics partner. However, the company reported a net income of $1.2 million for the quarter, a decrease from $3.3 million in the prior year, while the nine-month net loss narrowed to $2.98 million from $7.84 million.
Operationally, Perfect Moment has focused on enhancing its e-commerce presence, which has resulted in a 23% increase in e-commerce revenue for the three months ended December 31, 2023. The company has also seen a significant increase in its social media following, with an 18% growth across platforms from March 31, 2023, to March 20, 2024. The brand's strategy includes reducing the number of discounted products and shortening discount windows, which contributed to a record Black Friday sales event, generating $1.8 million in sales, a 52% increase year-over-year.
In terms of financial health, Perfect Moment reported a cash position of $3.4 million as of December 31, 2023, down from $4.7 million at the end of the previous fiscal year. The company has a shareholders' deficit of $5.3 million, reflecting ongoing challenges in achieving profitability. However, subsequent to the reporting period, Perfect Moment completed an initial public offering (IPO) on February 12, 2024, raising approximately $6.4 million in net proceeds, which is expected to bolster its cash position and support future growth initiatives.
Looking ahead, Perfect Moment aims to continue expanding its e-commerce capabilities and exploring international markets, particularly in China, where it plans to enter the market in 2024. The company is also focused on enhancing its product offerings and reducing reliance on wholesale channels, with a goal of improving gross margins and achieving sustainable profitability in the coming years.
About Perfect Moment Ltd.
Perfect Moment Ltd. is a luxury skiwear and lifestyle brand that combines technical performance with fashion-forward designs. Targeting affluent consumers, it operates in the growing luxury ski apparel and outerwear markets, projected to reach $2.4 billion and $23.2 billion by 2028, respectively. The company is expanding its product range to include swimwear and activewear while enhancing its direct-to-consumer strategy through e-commerce and pop-up stores, aiming for global market penetration.
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