Hour Loop, Inc. announced its financial results for the second quarter ended June 30, 2025, reporting net revenues of $27.1 million. This figure represents a decrease from $28.1 million in the year-ago period, primarily impacted by higher sales prices. The retail sector faced meaningful disruption from new U.S. trade actions targeting Chinese imports during this quarter.
Despite the revenue decline, Hour Loop's net income for Q2 2025 nearly doubled to $1.2 million, or $0.04 per diluted share, compared to $0.6 million, or $0.02 per diluted share, in Q2 2024. Gross profit percentage increased by 1.5% to 57.2% of net revenues, driven by strategic price adjustments. This indicates improved profitability and margin resilience.
Operating expenses as a percentage of net revenues decreased by 1.1% to 51.2%, mainly due to significant reimbursement for claims from the previous year. As of June 30, 2025, cash and cash equivalents were $0.3 million, down from $2.1 million at the end of 2024, due to loan repayment and increased inventory investment. Inventories ramped up to $20.9 million, reflecting intentional investment.
The company reiterated that it is not providing forward-looking guidance for the full year 2025 due to ongoing economic uncertainty, primarily influenced by current tariff conditions. Management stated that focused investments in operating efficiency and cost streamlining contributed to the expanded margins and reduced operating expenses.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.