Executive Summary

Q2 FY2025 net revenue was $3.83M, down 35% year over year due to the conclusion of a two-year Hugo Boss collaboration, but up 75% sequentially from Q1 FY2025, reflecting seasonal lift and improved eCommerce execution .
Gross margin was 54.0% (vs. 55.7% YoY), with management reiterating expectations for margin expansion in Q3/Q4 FY2025 as U.S. distribution center efficiencies flow through .
Operating expenses rose 29% YoY to $4.63M; net loss was $(2.74)M (EPS $(0.17)), and Adjusted EBITDA was $(2.00)M, largely impacted by the absence of collaboration revenue and higher SG&A to support growth .
Key narrative catalysts: margin initiatives tied to the new U.S. distribution center and brand amplification (SoHo seasonal store, global partnerships). Risk overhang: prior auditor going-concern qualification (FY2024) and ongoing need for external financing .

What Went Well and What Went Wrong

What Went Well

eCommerce traction and brand visibility increased: eCommerce net revenue up 8% YoY to $1.16M; social following reached 388k (+19% YoY), supported by high-profile KOL engagement .
Operational progress toward margin expansion: U.S. distribution center opened in October with expected duty/shipping cost benefits and improved gross margins in the second half of FY2025 .
Strategic partnerships and retail footprint: launch of SoHo seasonal store and activations (e.g., Johnnie Walker Blue Label Ice Chalet campaign) to deepen customer engagement and wholesale consistency (“relatively consistent” wholesale excluding collaborations) .
- “We grew our eCommerce business as we further expanded brand awareness and improved our supply chain operations” .

What Went Wrong

Top-line headwind from collaboration revenue rollover: total net revenue down 35% YoY driven by a $2.0M decline in collaborations revenue as Hugo Boss ended; Adjusted EBITDA loss widened vs prior year .
Gross margin dipped slightly YoY to 54.0%, pressured by end-of-season discounting and higher proportion of lower-margin eCommerce sales vs wholesale in the quarter .
Opex intensity: total operating expenses rose 29% YoY to $4.63M as SG&A increased (public company/fundraising costs, personnel, professional fees) despite lower marketing spend versus prior year .

Financial Results

Quarterly Trends (Q1–Q3 FY2025)

Metric	Q1 2025	Q2 2025	Q3 2025
Revenue ($USD Millions)	$0.97	$3.83	$11.66
Gross Margin %	36.6%	54.0%	54.8%
Net Loss ($USD Millions)	$(3.39)	$(2.74)	$(2.48)
EPS ($USD)	$(0.22)	$(0.17)	$(0.15)
Adjusted EBITDA ($USD Millions)	$(2.91)	$(2.00)	$(0.67)

Q2 FY2025 vs Prior Year (Q2 FY2024)

Metric	Q2 2024	Q2 2025
Total Revenue ($USD Millions)	$5.89	$3.83
eCommerce Net Revenue ($USD Millions)	$1.07	$1.16
Wholesale Net Revenue ($USD Millions)	$2.80	$2.68
Collaborations Revenue ($USD Millions)	$2.02	$0.00
Gross Margin %	55.7%	54.0%
Total Operating Expenses ($USD Millions)	$3.58	$4.63
Net Loss ($USD Millions)	$(1.51)	$(2.74)
EPS ($USD)	$(0.29)	$(0.17)

Segment/Channel Breakdown (Q2 FY2025)

Channel	Q2 2024 ($USD Millions)	Q2 2025 ($USD Millions)
eCommerce Gross Revenue	$1.34	$1.70
eCommerce Net Revenue	$1.07	$1.16
Wholesale Net Revenue	$2.80	$2.68
Collaborations Revenue	$2.02	$0.00
Total Net Revenue	$5.89	$3.83

KPIs and Balance Sheet Highlights

KPI	Q1 2025	Q2 2025
Cash & Equivalents ($USD Millions)	$1.10	$0.73
Restricted Cash ($USD Millions)	$2.85	$1.83
Accounts Receivable ($USD Millions)	$0.31	$2.46
Inventories ($USD Millions)	$2.02	$5.33
Trade Payables ($USD Millions)	$1.57	$4.14
Social Media Followers (#)	387,000	388,000

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Gross Margin	FY2025 (H2 emphasis)	None	Qualitative: management expects “anticipated improvement in gross margins” as U.S. DC efficiencies/duty savings flow through Q3–Q4	n/a
Revenue/Margins/EPS	FY2025	None	No formal quantitative guidance provided	Maintained “no formal guidance”

Note: The company did not provide numeric guidance ranges in Q2 FY2025.

Earnings Call Themes & Trends

No earnings call transcript was available in our document catalog for Q2 FY2025; themes are derived from press releases.

Topic	Previous Mentions (Q1 FY2025, Q3 FY2025)	Current Period (Q2 FY2025)	Trend
Supply chain & distribution	U.S. DC partnership with Quiet Platforms; expected duty/shipping savings in H2 FY2025	Reiterated margin improvement expected as DC efficiencies take effect	Improving margin trajectory into H2
Brand/retail expansion	First seasonal SoHo store opening planned; broader retail ambitions	SoHo store opened; activation campaigns, deeper engagement	Expanding footprint and engagement
Collaborations	Hugo Boss collaboration concluded; new Johnnie Walker collaboration ramping in Q3	Absence of collaboration revenue pressured YoY comps	Shift from legacy collab to new partnerships
Product/marketing	Accessories & eyewear launches; multi-channel KOL/media strategy	Continued KOL-driven reach; AI-generated resort scene in AW24	Sustained brand amplification
Regional trends	U.S. ~40% of FY2024 revenue; Europe ~30%	Sequential seasonal lift; timing impacts wholesale shipments	Seasonality/region mix dynamics persist
Regulatory/legal/financing	NYSE compliance plan; financing actions, going concern disclosure	Reminder of FY2024 going concern qualification in Q2 press release	Financing/liquidity remain watchpoints

Management Commentary

“In fiscal Q2, we grew our eCommerce business as we further expanded brand awareness and improved our supply chain operations…implemented more effective strategies that lowered our marketing expenses by 21% versus the same year-ago quarter” .
“Improving our gross margins remains an important focus…we expect [the U.S. distribution center] to reduce duty costs for ecommerce orders in the second half…helping to drive improved gross margins compared to last year” .
“Wholesale revenue…was relatively consistent in the quarter [excluding Hugo Boss],” with timing of shipments cited for the modest decline .

Q&A Highlights

No Q2 FY2025 earnings call transcript was available; no Q&A details could be extracted from primary sources.

Estimates Context

S&P Global consensus estimates for Q2 FY2025 could not be retrieved due to access limits; estimates were unavailable from our data source at the time of analysis.
Without consensus, we cannot quantify beats/misses versus Wall Street; investors should note the company’s qualitative margin improvement commentary and seasonal trajectory when considering estimate revisions . Values retrieved from S&P Global were unavailable due to request limits.

Key Takeaways for Investors

Seasonal rebound but collaboration rollover headwind: Sequential revenue strength (+75% vs Q1) underscores seasonality, while YoY decline reflects the end of Hugo Boss collaboration; watch conversion of new partnerships to revenue in H2 .
Margin expansion thesis: U.S. distribution center efficiencies should support gross margin improvement into Q3/Q4; track reported gross margin and duty/shipping costs in the next two quarters .
Opex discipline vs growth investment: SG&A elevated to support brand and infrastructure; monitor SG&A trajectory and operating leverage as revenue scales .
Liquidity/financing overhang: Prior going-concern qualification remains a risk factor; monitor financing activities and working capital (AR and inventory) given seasonal build and cash position .
Wholesale timing and mix: Wholesale variability tied to shipment timing; assess channel mix and eCommerce discounts’ impact on margin .
Brand momentum: KOL-driven reach and retail activations continue to build awareness; look for durable eCommerce conversion and repeat purchase behavior .
Near-term trading lens: Into Q3/Q4, catalysts are margin expansion prints and holiday/winter demand; risks are execution on wholesale timing, financing needs, and macro softness in discretionary spend .

Perfect Moment Ltd. (PMNT)·Q2 2025 Earnings Summary