Hour Loop, Inc. announced its financial results for the first quarter ended March 31, 2025, reporting net revenues of $25.8 million. This represents a 4.7% increase compared to $24.7 million in the year-ago period, driven by continued growth despite an e-commerce traffic slowdown. The company's revenue growth indicates ongoing market presence.
However, net income for Q1 2025 decreased to $0.7 million, or $0.02 per diluted share, from $1.1 million, or $0.03 per diluted share, in Q1 2024. Gross profit percentage also declined by 3.9% to 54.7%, primarily due to increased market competition and higher inbound costs. These factors impacted the company's profitability.
As of March 31, 2025, cash and cash equivalents stood at $1.3 million, down from $2.1 million at the end of 2024, attributed to loan repayment and inventory growth. Inventories increased to $15.9 million from $14.6 million, reflecting intentional strategic investment. The company's liquidity and inventory strategy are key financial points.
Hour Loop stated it is not able to provide forward-looking guidance for the full year 2025 at this time. This decision is due to ongoing economic uncertainty, primarily influenced by current tariff conditions. The withdrawal of guidance introduces uncertainty for investors regarding future performance.
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