In This Article:
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Pro Forma NPAT: $4.8 million, up 37% on the prior period.
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Sales Growth: Up 2.4% with comparable store growth at 2.2%.
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Gross Margin: Increased 260 basis points to 39.8%.
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Net Debt: $9.1 million.
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Comparable Store Sales Growth (Second Half to Date): 2.8%.
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Online Sales: Grew 2.8% year-on-year, representing 22.4% of total sales.
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Marketplace GMV: $2.5 million, up 184% year-on-year.
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Total Sales: $254.4 million, up 2.4% compared to the prior period.
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Cost of Doing Business: $87.2 million, up $5.4 million from the previous year.
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Cash Conversion Ratio: 63.1%.
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Investment Expenditure: $4.4 million for the half.
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CapEx (Second Half Expectation): Between $6 million and $9 million.
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Exclusive Products Sales: 48.4% of total sales, up 330 basis points.
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New Customer Acquisition: Up 12% on the prior period.
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Store Network Expansion: Two new stores opened and one relocated in the first half.
Release Date: February 17, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Pro forma NPAT increased by 37% to $4.8 million, indicating strong earnings growth.
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Gross margin improved by 260 basis points to 39.8%, moving towards the 40% target.
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Comparable store sales grew by 2.2%, with a notable acceleration in Q2.
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Exclusive product launches, such as the Maxi-Cosi Halo 360, are driving larger basket sizes and margin improvements.
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New customer acquisition increased by 12%, showcasing effective strategy execution in attracting new customers.
Negative Points
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Cost of doing business increased, largely due to strategic investments and inflationary impacts on operational labor.
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The decision not to pay a dividend reflects a focus on near-term growth, which may disappoint income-focused investors.
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Net debt stands at $9.1 million, although it has improved, it still represents a financial obligation.
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The retail environment remains challenging, with margins under pressure despite improvements.
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New Zealand operations are not yet breakeven, with a target set for FY27, indicating ongoing challenges in that market.
Q & A Highlights
Q: Cost of doing business has increased significantly as a percentage of sales. Do you see this as a structural change, and what are the levers to improve it? A: Darin Hoekman, CFO, explained that wage inflation and new store rollouts have driven the increase in costs. The strategy to improve includes store refurbishments and further store rollouts, focusing on lowering variable costs across freight lines and other business elements.