The revenue decline was primarily attributed to a 3.7 percent drop in average order value, caused by temporary supply chain disruptions that limited stock levels, partially offset by a 2.2 percent increase in order volume, led by growth in Australia and New Zealand.
also known as Brands Holding Corp, reported net sales of $147.1 million in Q3FY25, down 1.9 percent year-on-year, while gross margin improved to 59.1 percent. Net loss narrowed to $5 million, with adjusted EBITDA of $7 million. For the nine months, sales reached $436.3 million, with a net loss of $16.9 million. Sales guidance for FY25 was revised to between $598 million and $602 million.
However, the net loss narrowed slightly to $5 million, or $0.46 per share. Adjusted EBITDA reached $7 million, representing 4.8 percent of net sales. Selling expenses increased to $43.2 million (29.4 percent of sales) from $41.9 million (27.9 percent of sales), primarily due to the expansion of the company's retail presence, Brands Holding said in a news release.
Marketing expenses fell to $18.5 million (12.6 percent of sales), reflecting greater spending efficiency compared to $19.3 million (12.9 percent of sales) last year. General and administrative expenses decreased to $26.7 million (18.1 percent of sales), demonstrating continued cost optimization.
“We made significant progress on our strategic priorities in the third quarter,” he said Ciaran Long, Chief Executive Officer (CEO) of also known as Brands. “We opened Princess Polly's 11th store at The Westchester Mall, we expanded our wholesale partnerships and successfully refinanced our debt, further strengthening our financial position. “We are also making progress in optimizing our sourcing structure, which will improve resilience and flexibility across our operations.”
“I am proud of the progress our teams have made in advancing our strategic initiatives, positioning us to drive long-term sustainable and profitable growth,” Long added.
Inventory for the quarter was $96.7 million, slightly up from $95.8 million at the end of fiscal year, but below the level of $106 million recorded in Q3 2024. Debt totaled $111.3 million, almost unchanged from $111.7 million at the end of FY24.
For the first nine months (9 months) of FY25, also known as Brands, reported net sales of $436.3 million. Gross profit increased to $253 million thanks to improved gross margins. Operating expenses increased to $260.3 million. As a result, the company posted an operating loss of $7.3 million. Net loss for the 9-month period was $16.9 million, or $1.58 per share.
As of September 30, 2025, cash and cash equivalents were $23.4 million, compared to $24.2 million at the end of FY24.
Operating cash flow for the 9M improved dramatically to $14.7 million, reversing a cash outflow of $6.3 million in the prior-year period, reflecting stronger working capital management and operational discipline.
The company expects net sales between $598 million and $602 million for FY25, down from the previous range of $608 million to $612 million due to tariffs introduced during 2025. Adjusted EBITDA between $23 million and $23.5 million, down from previous guidance of $24.5 million to $27.5 million. Capital expenditures between $16 million and $18 million, reflecting continued investment in infrastructure and physical retail expansion.
Fiber2Fashion News Desk (SG)
