Step One Clothing (STP) H2 2024 earnings summary

Executive summary

• Revenue increased 29.7% year-over-year to AUD 84.5 million, with EBITDA up 50.8% to AUD 18.1 million and net profit rising 43.9% to AUD 12.4 million.

• Customer base expanded 23% to 1.67 million, with 63% returning customer rate and 19% of orders from word of mouth.

• Women's revenue surged 54%, now representing 14% of total revenue and 30% of all orders.

• International markets expanded, with U.K. up 33.2% and U.S. up 261.5%.

• Strong cash position of AUD 39 million and no debt, supporting ongoing growth initiatives.

Financial highlights

• Gross margin remained strong at 80.8%, with gross profit reaching AUD 68.3 million.

• EBITDA margin improved to 21.4% from 18.4% year-over-year.

• Advertising costs reduced to 32.7% of revenue, down from 35.7% year-over-year.

• Cash flow from operations increased 303.1% year-over-year to AUD 18.7 million.

• Fully franked dividend of AUD 0.068 per share declared, representing a 100% payout ratio.

Outlook and guidance

• Focus on profitable growth in Australia and UK, balancing growth and profitability in the US, and testing new markets like Canada and Germany via capital-light strategies.

• Plans to expand product range and recruit new customers through partnerships and established platforms.

• No formal financial guidance provided for the upcoming year.