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Hour Loop Reports First Quarter of 2025 Results

Profitability Continues Despite Challenges for the Overall Economy

Redmond, WA, May 12, 2025 (GLOBE NEWSWIRE) -- Hour Loop, Inc. (NASDAQ: HOUR) (鈥淗our Loop鈥�), a leading online retailer, announces its financial and operational results for the quarter ended March 31, 2025.

Financial Highlights for First Quarter of 2025:

• Net revenues increased 4.7% to $25.8 million, compared to $24.7 million in the year-ago period;
• Net income decreased to $0.7 million, compared to $1.1 million for the three months ended March 31, 2024; and
• Cash used in operating activities was $0.02 million, compared with cash provided by operating activities $0.5 million for the three months ended March 31, 2025 and 2024, respectively.
  
  

Management Commentary

鈥淲e are pleased to report our results for the first quarter of 2025. During the first quarter of 2025, we continued to deliver good revenue growth, despite a more cautious consumer outlook due to rising tariffs and fees charged by the marketplace,鈥� said Sam Lai, CEO and interim CFO of Hour Loop. 鈥淭he revenue growth rate for the first quarter was 4.7%, compared with for the year-ago period.鈥�

鈥淗owever, our gross margin for the first quarter of 2025, compared with the year-ago period, was negatively affected by a challenging e-commerce environment and intense competition across the industry. Our operating expenses also increased mainly because we amended our profit-sharing frequency to quarterly for the purpose of talent retention. Overall, we believe we鈥檝e built a solid foundation to continue generating steady growth while maintaining profitability.鈥�

鈥淟ooking forward, we鈥檙e cautiously optimistic. Despite an uncertain economy, we continue to see strong demand for our products so far in 2025. We are confident in our ability to continue delivering values to our vendors, customers, and shareholders.鈥�

First Quarter of 2025 Financial Results

Net revenues in the first quarter of 2025 were听$25.8 million, compared to听$24.7 million听in the year-ago period. The increase was primarily due to continued growth and maturity in our personnel and operating model, despite the overall e-commerce traffic slowdown and intense competition.

Gross profit percentage for the first quarter of 2025 decreased 3.9% to 54.7%, compared to 58.6% of net revenues in the comparable period a year ago. The decrease was a function of increased market competition, and higher inbound costs.

Operating expenses as a percentage of net revenues decreased 1.1% to 51.2%, compared to 52.3% of net revenues in the year-ago period. The decrease reflected better management of platform fees.

Net income in the first quarter of 2025 was听$0.7 million, or听$0.02听per diluted share, compared to听$1.1 million, or听$0.03听per diluted share, in the comparable year-ago period. The decrease was driven by increased costs and expenses as a result of the reasons mentioned above.

As of听March 31, 2025, the Company had听$1.3 million听in cash and cash equivalents, compared to听$2.1 million听as of听December 31, 2024. This decrease was driven by the loan repayment and growth of inventory.

Inventories as of听March 31, 2025, were听$15.9 million, compared to听$14.6 million听as of听December 31, 2024. The Company intentionally invested heavily in inventories for strategic reasons in the first quarter of 2025.

Full Year 2025 Financial Outlook

For the full year 2025, Hour Loop is not able to provide forward-looking guidance at this time due to ongoing economic uncertainty, primarily influenced by current tariff conditions.

About Hour Loop, Inc.

Hour Loop is an online retailer engaged in e-commerce retailing in the U.S. market. It has operated as a third-party seller on 听and has sold merchandise on its website at 听since 2013. Hour Loop further expanded its operations to other marketplaces such as Walmart, eBay, and Etsy. To date, Hour Loop has generated practically all its revenue as a third-party seller on 听and only a negligible amount of revenue from its own website and other marketplaces. Hour Loop manages more than 100,000 stock-keeping units (鈥淪KUs鈥�). Product categories include home/garden d茅cor, toys, kitchenware, apparel, and electronics. Hour Loop鈥檚 primary strategy is to bring most of its vendors鈥� product selections to the customers. It has advanced software that assists Hour Loop in identifying product gaps so it can keep such products in stock year-round, including the entirety of the last quarter (holiday season) of the calendar year. In upcoming years, Hour Loop plans to expand its business rapidly by increasing the number of business managers, vendors, and SKUs.

Forward-Looking Statements

This press release contains statements that constitute "forward-looking statements," including with respect to Hour Loop鈥檚 business strategy, product development and industry trends. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of Hour Loop. While Hour Loop believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to Hour Loop on the date of this release. These forward-looking statements are based upon current estimates and assumptions and are subject to various risks and uncertainties, including, without limitation, those set forth in Hour Loop鈥檚 filings with the Securities and Exchange Commission, as the same may be updated from time to time. Thus, actual results could be materially different. Hour Loop undertakes no obligation to update these statements whether as a result of new information, future events or otherwise, after the date of this release, except as required by law.

Investor Contact

Finance Department, Hour Loop, Inc.

HOUR LOOP, INC.
CONSOLIDATED BALANCE SHEETS
(In U.S. Dollars, except for share and per share data)
As of March 31, 2025 and December 31, 2024
(Unaudited)

The accompanying footnotes are an integral part of these unaudited consolidated financial statements.

HOUR LOOP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(In U.S. Dollars, except for share and per share data)
For the Three Months Ended March 31, 2025 and 2024
(Unaudited)

The accompanying footnotes are an integral part of these unaudited consolidated financial statements.

HOUR LOOP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In U.S. Dollars)
For the Three Months Ended March 31, 2025 and 2024
(Unaudited)

The accompanying footnotes are an integral part of these unaudited consolidated financial statements.