Pinned straw:
Step One plans to report its 1H24 financial result on 20 February 2024.
ESG and what about the carbon credits..
Share price stepping up Nice.. As long as this price avoids the 'elevator' on the way down well it should be ok here.
Price reaction up 11% this morning
Very interesting result.
The EBITDA guidance (essentially EBIT in this case) for 1H FY24 is roughly in line with the EBITDA achieved during the peak pandemic period of 1H FY21 (excluding SBC and IPO costs). I can't think of any e-commerce only physical good company with profitability (provided it's not trivial) that has returned to those levels.
It's hard to have a firm understanding on how they've achieved this. Curtailing ad spend is certainly a part of it. As was some currency tailwinds due to the weak AUD for the UK and US sales.
This is one company where a case can be made that customer loyalty is having a positive impact. Returning customer % is trending up, average basket size is up, while ad spend % is down.
One thing to watch is inventory levels. It's currently just below 2 year's worth of COGs, which I feel is high for this sort of company.
It's interesting. I've a small position in RL.