London-based luxury lifestyle brand Perfect Moment, which completed a NYSE IPO on Feb. 8, reported a 69 percent drop in operating income to $728,000 from $2.32 million for the period ended Dec. 31. Year-over-year net income fell by 63 percent to $1.2 million from $3.27 million. Total revenues declined by 21 percent to $12.7 million from $16.2 million, with e-commerce sales rising 23 percent to $3.75 million due to greater brand awareness. Still, wholesale revenues declined by 32 percent to $8.97 million, caused by a difficult comparison. Gross margin dipped by 20 basis points to 38.2 percent due to the lower volume of higher-margin wholesale business.
Perfect Moment combines fashion and technical performance in skiwear, outerwear, swimwear and activewear. The company described Q3 as a “special transitional period” ahead of its IPO, the addition of senior management and increased focus on the e-commerce channel.
In its new fiscal year, which begins in April, the group is broadening its lifestyle offerings through its first summer product line and a new DTC capsule collection for fall. Perfect Moment believes the new lines, coupled with other DTC and retail initiatives, will lessen its reliance on winter season sales. Additionally, the company is investigating a channel expansion into retail to gain greater market share, particularly in Europe and the US.
