In this week’s briefing, the leadership team of skiwear brand Perfect Moment reflects on the process of taking the company public and maps out their plans from here. Scroll down to use Glossy+ Comments, giving the Glossy+ community the opportunity to join discussions around industry topics.
Following some bumps on its road to IPO, the U.K.-based fashion skiwear brand Perfect Moment went public on February 8 with a $93 million valuation. The company, which earned $23 million in 2023 revenue, raised $8 million through the sale of 1.33 million shares priced at $6 each.
“It’s the traditional route of raising money for your business,” CEO Mark Buckley told Glossy pre-IPO, in late January. Beckley joined the company in November 2022 following financial roles at Burberry and, most recently, Rapha. “From a brand-building point of view, we’ve got momentum in an incredible sector. And now, we need a bit of cash to fuel our plans for revenue growth and profit.”
The move came as several publicly traded fashion brands were voluntarily going private. The fact that investors have become skittish, particularly when it comes to betting on unprofitable companies, has been a driving factor.
According to Buckley, public market support allows the brand independence as it carries out its growth plans. For the next five years, those plans include adding structure to its internal processes and expanding its product offerings to become a year-round brand. It also aims to build out a team, operations and a physical retail footprint in the U.S., which accounts for 44% of its business. Private equity investors, on the other hand, “have their own plans [for a company], quite often,” he said.
Currently, Perfect Moment sells its function-meets-fashion skiwear through U.S. retailers including Saks Fifth Avenue, Neiman Marcus, Rent the Runway and Gorsuch, the last of which has ski shops in Colorado and Park City, Utah.
A “young, fashionable” and largely Gen-Z U.S. audience has embraced the brand on social media, which Jane Gottschalk, the brand’s co-founder and chief creative officer, owed to its “vibrant” and, therefore, Instagrammable products. A brand-driven #momentmaker hashtag, meant to accompany captured instances of living in the moment, has been used more than 16,000 times on Instagram, where Perfect Moment has 350,000 followers.
According to Buckley, Perfect Moment “is not a performance marketing-driven business.” Gottschalk noted the brand’s alternative marketing focus of creating moments that bring the brand to life. For example, it popularly hosts ski trips for influencers and members of the press.
Perfect Moment’s current 50-50 balance of direct-to-consumer and wholesale sales is set to stay intact, though the company plans to “go deeper” with retail partners and open stores, starting in New York, said Gottschalk. It’s also eying the Dallas and Miami markets, based on where its shoppers reside. The company recently tested physical retail with a shop-in-shop in Selfridges and a pop-up at L.A.’s Fred Segal, both of which offered inspiration for how the brand could show up IRL, Buckley said. He described the Fred Segal activation as a success, but declined to share the revenue driven. Currently, only Perfect Moment’s CFO is based in the states, but the plan is to soon hire a U.S. general manager.
Building on its ski-focused assortment of $800 puffer coats and $500 ski pants will be a priority moving forward, starting with more general winter wear befitting fashion’s beloved après-ski category including knitwear and boots. In addition, the brand will leverage its existing long-sleeve, UV-protective swimwear styles as a starting point for introducing summer-specific products. Perfect Moment often allows brand ambassadors to test new products before rolling them out in retail channels.
“We’re taking her from St. Moritz to St. Barts, while keeping our technical story consistent and being thoughtful,” Gottschalk said. “It can confuse the customer if you move too quickly.”
Expanding and growing its menswear business will also be a focus. Considering the brand’s use of “the best” Japanese technical fabrics, Gottschalk said Perfect Moment is a luxury brand that will maintain that status.
In addition to providing a cash infusion, Perfect Moment banked on its IPO to work as a talent acquisition tool, leading to the opportunity to offer stock options as compensation and to the presence of new levels of “governance around the table,” Buckley said. As of late January, the company had already made new hires in production and design — the latter, with talent from Burberry and Stella McCartney, said Gottschalk. Buckley and Gottschalk were also hopeful that the “PR moment” would bring new awareness to the 40-year-old brand.
That rang true, Buckley said on Tuesday. “It’s amazing how many people have reached out since [the announcement] to comment on the achievement, or the milestone,” he said. “These are people who have either been through it or have attempted to get there and know the process. [They know that] in the current climate, particularly in the microcap space, it’s tough.”
Potential future employees and retail landlords have also come out of the woodwork, he said.
Following the U.S. expansion, Perfect Moment plans to build out its operations in Europe, which drives 30% of its sales. The company is currently leveraging a new technology to translate the brand’s international website for markets including France and Germany. Its home base of the U.K., where it sells through Selfridges, Harrods and Net-a-Porter, accounts for 20% of the business.
To support its new global approach, Perfect Moment is leaning into global partnerships, including with the international members’ club Soho House. In January, it teamed with the company on the opening events for its Portland House location.
Perfect Moment was founded in 1984 by professional skier Thierry Donard, who sold the business to Max and Jane Gottschalk in 2012. Nick Jonas and Priyanka Chopra Jonas became investors and brand ambassadors in 2022. The brand has remained unprofitable, but has downsized its debt in recent years.
The company decided to go public in the summer of 2023. As of January 23, it was seeking a $15 million payout, which, Buckley admitted at the time, was expected to be “tough in the current market.”
“It was tougher” than anticipated, Buckley said this week. The company’s IPO was eventually delayed by more than a week, before its final gross proceeds of $8 million were disclosed. However, Buckley said, the process was worth it.
“We now have a new group of shareholders, a very clean balance sheet and the cash to deliver our plan, plus we can deliver the plan without the distraction of fundraising,” he said. “And we managed to do it without distracting the business too much.”
The leadership team remained connected to the rest of the company throughout its “physical roadshow in the U.S. for most of January,” he said.
Moving forward as a public company, Perfect Moment’s operations will require “extra compliance, extra discipline and a few more considerations,” Buckley said. But, he added, “They’re the kind of disciplines you should probably have as a private business anyway.”
As for advice for other brands considering going the public route, he said to “be prepared.”
“People loved our story. But the markets are tough, and you never quite know how they’re going to react to writing a check and investing in the brand,” he said.
And, of course, there’s always the option of going it alone.
“More startups are starting to bootstrap themselves, which keeps them disciplined on the real kind of revenue generation and cash generation. And that’s traditional, too,” he said. “So, overall, I think we’re having a bit of a wake-up call that the world of cheap money is disappearing.”
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