Perfect Moment turns first profit as margins and wholesale surge

Perfect Moment Ltd. delivered its first profitable quarter on record, reporting net income of $93,000 (€89,000) for the three months ended Dec. 31, 2025 – a swing of approximately $2.6 million against a net loss of $2.5 million in the same period a year earlier. The New York-listed luxury outerwear and activewear brand released its fiscal third quarter 2026 results on Feb. 12.

The headline figure comes with a technical note: the company’s preferred stock dividends of $161,000 resulted in a net loss attributable to common shareholders of $68,000, or $0.00 per diluted share. At the net income line, however, the quarter marks a genuine profitability milestone.

Gross margin expansion drives the turnaround

Revenue for the quarter was flat at approximately $11.7 million (€11.2 million), consistent with fiscal Q3 2025. The shift in the profit profile was driven almost entirely by improvement in gross margin, which reached 64.4 percent compared with 54.8 percent a year earlier. Gross profit rose 17.5 percent to $7.5 million. At the same time, total operating expenses fell 9.9 percent to $6.9 million as the company reduced selling, general and administrative costs and phased marketing spend more evenly across the year.

Income from operations reached $583,000, against a loss of $1.3 million in the prior-year quarter. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) improved by $1.6 million to $882,000. For the nine months ended Dec. 31, 2025, total revenue rose 8.7 percent to $17.9 million (€17.2 million), against $16.5 million in the comparable prior period.

Wholesale gains offset a deliberate eCommerce retreat

The channel breakdown explains much of the story. Third quarter wholesale revenue increased 15.4 percent to $8.5 million (€8.2 million), from $7.3 million a year earlier. For the nine-month period, wholesale was up 28.4 percent to $12.9 million. The company attributes that growth to a stronger order book and improved operational execution, which enabled more efficient fulfillment and shipping timing.

eCommerce revenue, by contrast, fell 21 percent in the quarter to $2.9 million and declined 21.8 percent for the nine months. The company frames the decline as intentional: a strategic move away from discounted online selling as it transitions toward a full-price model. That channel shift — sacrificing volume at low margins for higher-margin wholesale and owned-retail revenue — is the primary mechanism behind the gross margin expansion.

H&M collaboration and owned retail support brand-building push

Beyond the financial results, the quarter saw several operational developments relevant to the brand’s long-term positioning. In early December 2025, Perfect Moment launched a global collaboration with H&M, placing its après-ski collection across H&M’s e-commerce platform and in 86 stores worldwide. According to the company, the collection sold out within the first day. The collaboration extends Perfect Moment’s reach into a broader, more aspirational consumer segment without discounting through its own channels.

The brand also opened its first owned retail store in Verbier, Switzerland, and confirmed seasonal pop-up locations in Kitzbühel, Gstaad, Jackson Hole and Aspen – all high-intent markets in the ski and luxury outdoor segment.

On the marketing side, Perfect Moment appointed Sharifa AlSudairi, Saudi Arabia’s first female Alpine skier, as a brand ambassador, and launched a winter capsule in partnership with the BWT Alpine F1 Team, with a campaign filmed inside an active Formula 1 wind tunnel at Alpine’s Enstone facility.