Gross margin expansion and a wholesale-led revenue mix helped the London outerwear brand cut its fiscal 2026 net loss by more than half, even as cash reserves thinned.
Perfect Moment narrowed its net loss to $7.1 million (€6.3 million) for fiscal 2026, which ended March 31, as gross margin rose for a fourth straight quarter. The London based luxury outerwear brand said it expects to reach profitable growth in fiscal 2027. Full year revenue rose 9.8 percent to $23.6 million (€20.7 million) from $21.5 million (€18.9 million), according to results filed for the year ended March 31, 2026.
Gross margin jumps on pricing discipline and vendor terms
Gross margin climbed to 67.6 percent from 48.5 percent. The company attributed the improvement to supply chain efficiencies, renegotiated supplier terms and more disciplined pricing across channels.
The increase was most pronounced in the fourth quarter, when gross margin reached 83.0 percent versus 32.0 percent a year earlier. The prior year quarter had been weighed down by inventory and discounting pressure, making the comparison unusually favorable.
| Perfect Moment — Income statement | |||
| Year ended March 31 (€ thousands)* | |||
| FY2026 | FY2025 | Change | |
| Revenue, net | 20,695 | 18,852 | 9.8% |
| Cost of sales | 6,702 | 9,708 | -31.0% |
| Gross profit (margin) | 13,993 (67.6%) | 9,144 (48.5%) | 53.0% |
| Selling, general and administrative | 15,752 | 18,137 | -13.1% |
| Marketing and advertising | 2,836 | 3,104 | -8.6% |
| Total operating expenses | 18,587 | 21,240 | -12.5% |
| Loss from operations | -4,594 | -12,096 | -62.0% |
| Net loss | -6,252 | -13,975 | -55.3% |
| Adjusted EBITDA loss | -3,064 | -9,914 | -69.1% |
*Converted from USD at $1 = €0.877, June 30 2026. Source: Perfect Moment Ltd. fiscal full-year 2026 results, reported for the year ended March 31, 2026.
Loss narrows as adjusted EBITDA improves
Net loss improved by about $8.8 million to $7.1 million, or $(0.23) per diluted share, compared with a $15.9 million (€14.0 million) net loss, or $(0.99) per diluted share, in fiscal 2025.
Adjusted EBITDA loss narrowed to $3.5 million (€3.1 million) from $11.3 million (€9.9 million). Total operating expenses fell 12.5 percent to $21.2 million, which the company said reflected cost discipline and more efficient marketing allocation.
Channel mix
Wholesale revenue grew 42.3 percent to $14.4 million (€12.6 million) and overtook ecommerce as a share of sales. ecommerce revenue fell 17.9 percent to $8.3 million (€7.3 million). The company said it pulled back from discounted online sales as it shifts toward a full price model.
Management says margin gains set up “profitable growth” in fiscal 2027
Co founder and President Jane Gottschalk said the year marked progress toward sustainable profitability despite a challenging duty and tariff environment. Chief Financial and Operating Officer Chath Weerasinghe cited a new European fulfillment center and renegotiated vendor terms as key drivers of the margin improvement, and said fiscal 2027 should translate that discipline into profitable growth.
