SurfStitch catches a break
Online retailer SurfStitch has maintained its full year prospectus forecast of $5.1 million in underlying earnings.
The retailer that sells 600 surfwear, sportswear and accessory brands online has released its maiden profit result since it listed on the Australian share market in December.
It made a pro-forma profit of $300,000 in the six months to December 31, compared with a loss of $1.4 million in the same period a year ago.
SurfStitch says sales growth was in line with prospectus numbers with a 23 per cent lift in sales for the half to $103.6 million.
It reaffirmed its full year prospectus forecast of $199 million in sales and EBITDA (earnings before interest, taxes, depreciation, and amortisation) of $5.1 million.
The group says it achieved strong revenue growth in all its regions, including Asia Pacific, Europe, and North America.
Operating expenses increased by 25 per cent as the group integrated the recent acquisitions of online retailers Swell and Surfdome.
CEO, Justin Cameron, says the acquisitions have made the group a global leader in online actions sports and youth apparel.
“Access to a sizeable global database and providing customers with a unique assortment and range with exclusive products and content have been key to our strong revenue growth for the first half of fiscal 2015,” he said.
“… many of our competitors saw single digit growth over the same period.”
Surfstitch bought Quiksilver’s European online business Surfdome in December, just months after it bought out Billabong’s large stake in Surfstitch, and Swell.com.
The company says it’s not planning on paying a dividend in FY2015. Instead cash would to be reinvested into growth.
The result pleased investors, with SurfStitch shares up 6.5 cents, or 5.49 per cent to $1.25 at 1156 AEDT.
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