Step One Clothing (STP) H2 2024 earnings summary

Executive summary

• Revenue increased 30% year-over-year to AUD 84.5 million, with EBITDA up 51% to AUD 18.1 million and net profit up 43.9% to AUD 12.4 million.

• Total customers grew 23% to 1.67 million, with a 63% returning customer rate and average order value up 7.1% to AUD 96.

• Women's revenue surged 54%, now representing 14% of total revenue and 30% of all orders; order volume up 38%.

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

• Word-of-mouth accounted for 19% of global orders, with Australia leading at 30%.

Financial highlights

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

• Cash balance increased to AUD 39 million, with no debt.

• Advertising costs as a percentage of revenue reduced from 35.7% to 32.7%.

• Fully franked dividend of AUD 0.068 per share declared, totaling AUD 16.6 million and a 100% payout ratio.

• Inventory decreased 19% year-over-year, attributed to timing of deliveries and strong product demand.

Outlook and guidance

• Focus remains on profitable growth in existing and new markets, with product adjacencies, partnerships, and platform expansion as key drivers.

• No formal financial guidance provided for the upcoming year.

• Testing new markets such as Germany (via Amazon) and Canada (via U.S. 3PL) aligns with capital-light strategy.