KEEMO Fashion Group Reports Revenue Decline and Increased Net Losses for Three and Six Months Ended January 31, 2025

KEEMO Fashion Group Limited reported its financial results for the three and six months ended January 31, 2025, revealing a decline in revenue and an increase in net losses compared to the previous fiscal period. The company generated revenue of $5.0 million for the three months ended January 31, 2025, a slight decrease from $5.1 million in the same period last year. For the six months, revenue fell to $10.0 million from $11.6 million. The cost of revenue for the three months was $2.6 million, leading to a gross profit of $2.5 million, down from $2.6 million in the prior year. The net loss for the three months increased significantly to $10.3 million from $2.2 million, while the six-month net loss was $18.7 million, compared to $28.0 million in the previous year.

The company's financial position showed a decrease in total assets, which fell to $26.3 million as of January 31, 2025, from $28.5 million as of July 31, 2024. Current liabilities increased to $93.9 million, up from $77.4 million, primarily due to an increase in amounts due to a director, which rose to $90.7 million from $69.9 million. Shareholders' equity also deteriorated, with an accumulated deficit of $99.7 million compared to $81.0 million in the previous period, resulting in total shareholders' equity of negative $67.6 million.

Operationally, KEEMO Fashion Group continues to focus on its apparel and garment trading business, primarily wholesaling to distributors in Asia. The company reported that it has not engaged in any significant acquisitions or product launches during the reporting period. The total number of shares outstanding remained at 55 million following a ten-for-one stock split that took effect in August 2024. The company has not disclosed any changes in employee headcount or geographic expansion efforts.

The filing indicates that the company is facing challenges in maintaining liquidity, with cash and cash equivalents at $21.9 million, which management states is insufficient to fund operations for an extended period. The company reported net cash provided by operating activities of $2.5 million for the six months ended January 31, 2025, a turnaround from a cash outflow of $16.7 million in the same period last year. Management has indicated that future operations will depend on generating profits and obtaining necessary financing, with a shareholder expressing intent to provide additional support if needed.

Looking ahead, KEEMO Fashion Group acknowledges substantial doubt about its ability to continue as a going concern due to its financial condition. The company is actively seeking to improve its operational performance and financial stability, but it remains reliant on external funding and the successful execution of its business strategy to navigate the current market conditions.