Perfect Moment at NYSE.
Devarsh Srivastava
Turning Insights into Impact | Business Development Analyst | Growth Strategist
In this article, I won’t be talking about NYSE having perfect moments, but I am going to talk about a company “Perfect Moment (PMNT)†listed on the NYSE.
What Perfect Moment does?
It is a UK-based company that sells luxury sports apparel to consumers worldwide. It specializes in selling-
·?????? Skiwear
·?????? Outerwear
·?????? Swimwear
·?????? Activewear
Their mission is to become the No.1 luxury ski apparel brand in the world. They mainly cater to professional athletes and extreme sports filmmakers. They create their designs in such a way that their customers can have perfect ski runs.
Their core strengths-
·?????? Strong Brand Positioning
·?????? Authentic brand resonating with highly valuable customer segments
·?????? Unique Marketing Engine
·?????? Multi-Channel Distribution
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Financial of Perfect Moment-
Presently their revenue in 2022 is roughly around 23.44 million $ in which they made a loss of 10.32 million $. This financial status is way better than their performance in 2021 where they had a revenue of only 16.45 million $ in which they made a loss of 12.17 million $.
They were able to reduce their losses mainly by increasing their operating cash flow and free cash flow margin. In the last year, they have managed to bring their -9.59 EBITDA to -7.1.
How big is the market they cater to?
· The sports apparel market is valued presently at 203.26 billion $ in 2023 and is expected to be valued at 271.77 billion $ by 2030. It is exhibiting a CAGR of 4.24% globally.
?· Out of that Ski clothing market is valued presently at 6.79 billion $ and is projected to reach 8.78 billion $ globally by 2030. It is growing at a CAGR of 4.36%.
?· The exact market that PMNT is catering to is the luxury ski market which is presently valued at 1.6 billion $ and is expected to reach 2.3 billion $ by 2028 with a CAGR of 6.49%.
PMNT already has some tough competition in the market like –
·?????? Nike
·?????? Adidas
·?????? Puma
·?????? Under Armour
·?????? Skechers USA
·?????? The Columbia Sportswear Company
·?????? They plan to enter luxury outwear and also target the leisure market for swimwear, activewear, and lifestyle products.
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Details about IPO
PMNT is planning to raise approximately 8 million dollars before deducting underwriting discounts and offering expenses through IPO. The term underwriting is done by ThinkEquity and Laidlaw & Co.
The Initial Public Offering for PMNT was at $6 but it opened for trading at $4.43 on Thursday.
Their future business strategies-
·?????? Grow brand awareness to attract new customers.
·?????? Accelerate Digital Growth
·?????? Enter Newmarket.
·?????? Enhance the Wholesale network.
·?????? Broaden Product Offering.
As they are not a profitable company their plan to increase the margins are –
·?????? Shift towards D2C
·?????? Reducing the skiwear products
·?????? Reviewing the price positioning
·?????? Review the supplier base
·?????? Reducing the cross-border cost
Conclusion-
Even though the company has improved its financials but still has no clear plan to make the company profitable. Their plans are at a very early stage and the ways to increase margin are not detailed nor it is easy to attain. So, profitability is very hard to be attained shortly. Also, the market which they are catering to is not that big so there is very little room for improvement. Even though they are planning to enter a new market in most of the part of globe skiing is not that common and is by very small population.
I am not buying this stock now but it too early to assess if it will grow in the future.
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References-
5)????? https://shorturl.at/hlqCE
6)????? https://www.iposcoop.com/ipo/perfect-moment/???????????
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