Step One Clothing (STP) H1 2025 earnings summary

Executive summary

• Revenue for H1 FY2025 rose 6.8% year-over-year to AUD 48.1 million, with EBITDA up 10.4% to AUD 11.2 million and net profit after tax increasing to AUD 8.2 million.

• The business remains debt-free and capital light, with cash and financial assets totaling up to AUD 43.8 million at period end.

• Customer base grew to over 1.8 million, with a 69% return customer rate for the third consecutive period.

• Interim dividend of AUD 0.044 per share declared, fully franked, with AUD 5.2 million paid in dividends.

• Gross margin declined to 78%, reflecting a focus on value-conscious customers and promotional activity.

Financial highlights

• Australian revenue grew 17.4% year-over-year, UK revenue up 7%, and US revenue down 61.4%.

• EBITDA margin increased to 23.2%, and net profit after tax rose 15.1% to AUD 8.2 million.

• Advertising costs reduced to 29% of revenue, down from 34.1% in the prior year.

• Cash flow from operations was AUD 9.9 million, with higher inventory investment to support product expansion.

• Inventory increased by AUD 3.7 million to AUD 22.6 million, with a 5% provision for obsolescence.

Outlook and guidance

• No formal guidance provided for FY2025.

• Focus remains on expanding product range, efficient customer acquisition, and partnership expansion.

• Continued prioritization of profitable growth in Australia and the UK, with the US as a longer-term opportunity.

• No material changes to principal activities or business model are anticipated.