Pinned straw:
An update was out this morning. I was expecting Revenue/PBT for 2H to be $36.3m/$5.8m (assuming PBT margins matched pcp of 16%) and it's coming in at around $39m/$7.2m. So revenue and PBT a bit better than my expectations in a seasonally weaker half.
The full year results will be interesting. In particular on the commentary around its expansion in the UK and the US. Shipping into the US increased dramatically in the past 6 months, and this should be a leading indicator that they're doing quite well there.
(sourced from import genius)
PS: The undies are on special on Amazon right now during its Prime Day sale. I've taken the opportunity to upgrade my threadbare ones.
Step One has been dominating the charts on amazon.com.au over the Prime Day sales period. Amazon only provides ranks by category and sub-category. Judging by the categories present, they could very well be the number 1 product across the entire site!
To be honest, I don't quite understand why this is happening. But what we could be seeing is the emergence of a brand, and not just another premium commodity underwear. Perhaps there's enough returning buyers, or people that know the brand well - that they all pile in during these sales events.
One of the key expenses for a direct-to-consumer e-commerce business is sales and marketing in the form of google/facebook ads. They spent a whopping 39% of revenue in 2H FY23 on ads and marketing. If Step One has gained enough of a following (escape velocity if you will) to escape the CAC treadmill - then it would bode well to build on sales and improving on its profit margins.
@mikebrisy is it possible to share his calcs. DMs are open if you don't want to do it in the open.
Here's my historical numbers as well as the most recent half with the information provided. As you can see, NPAT is kicking on nicely. And this is with the UK and US very much sub-scale at the moment, so there's room for improvement as they growth in those geographies.
1H is stronger than 2H seasonally. Xmas, Black Friday, Prime Day, Father's Day, etc.
@mushroompanda I don't know who the covering analyst is.
Here is the screen of www.marketscreener.com, which is my source. Just one covering analyst in the forecasts.
Financial
Revisions - impressed by the update!
Not just you replacing the old undies it seems @mushroompanda (or "innerwear products" as the company likes to call them). Looks like an outstanding result, and the market really likes it too (up 23% at time of writing!!).
Gosh, a lot of big moves happening lately.
I've emailed Greg to see if he'll come chat with us.