Hour Loop Q2 rev down 3.4% YoY to $27.1mln.

• Hour Loop's Q2 net revenues down 3.4% to $27.1mln • Net income increased to $1.2mln, up from $0.6mln YoY • Cash used in operating activities for H1 2025 was $0.9mln • Retailers face disruption due to new US trade actions • Rising costs and supply chain uncertainty pressure margins • Companies must adapt quickly to changing sourcing dynamics

Hour Loop Inc. (NASDAQ: HOUR), a Seattle-based e-commerce innovator, reported its second quarter 2025 financial results, showing mixed performance amidst ongoing trade disruptions and rising costs. The company's net revenues decreased by 3.4% to $27.1 million compared to $28.1 million in the same period last year. Despite this decline, net income increased to $1.2 million, up from $0.6 million in Q2 2024, representing a 100% year-over-year growth.

The company's gross profit margin improved by 1.5% to 57.2%, while operating expenses as a percentage of net revenues decreased to 51.2%. Cash position stood at $0.3 million as of June 30, 2025, down from $2.1 million at year-end 2024. Inventory levels increased to $20.9 million from $14.6 million.

Hour Loop's CEO, Sam Lai, attributed the mixed results to challenges from new U.S. trade actions affecting Chinese imports and the cancellation of de minimis tax exemptions in 2025. Despite these challenges, the company maintained profitability through improved operating efficiency and strategic price adjustments.

The company has withheld full-year 2025 guidance due to economic uncertainty. Hour Loop has been actively adapting to changing sourcing dynamics by partnering with Return Helper to enhance its cross-border e-commerce supply chain operations between Taiwan and the U.S. This partnership aims to mitigate inventory pressure from tariff adjustments and improve supply chain visibility.

Hour Loop's strategic initiatives, including the partnership with Return Helper and ongoing technological advancements, indicate a commitment to resilience and growth in the face of market disruptions. The company continues to leverage machine learning and data analytics to drive its multi-platform retail strategy, positioning itself for long-term success in competitive online retail markets.

References:
[1] https://www.stocktitan.net/news/HOUR/
[2] https://www.investing.com/news/company-news/banco-bpm-h1-2025-slides-net-income-exceeds-12bn-as-anima-acquisition-pays-off-93CH-4171095