Surfstitch sets sights on USD788m prize
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Online surf and action sports retailer Surfstitch is on track to deliver its first profit in three years and is eyeing the sales and market share of bricks and mortar and online rivals as part of a five-year plan to lift sales fivefold to AUD1 billion (USD788.2 million).
Surfstitch reaffirmed its full-year prospectus forecasts on Wednesday after record pre-Christmas trading and recent acquisitions fuelled a 23 percent surge in December-half sales and boosted gross margins by 236 points to 46.9 percent.
Pro-forma earnings before interest, tax, depreciation and amortisation jumped 160 percent to AUD3 million and net profit excluding one-off costs came in at AUD300,000, compared with a loss of AUD1.4 million in the same period in 2014.
Questions & Answers
Q.What are Surfstitch's long-term financial goals?
What are Surfstitch's long-term financial goals?
Surfstitch aims to increase sales fivefold to AUD1 billion, or USD788.2 million, as part of a five-year plan. This strategy involves capturing sales and market share from both physical and online competitors.
Q.How did Surfstitch perform financially in the December-half?
How did Surfstitch perform financially in the December-half?
Sales surged by 23 percent during the December-half, driven by strong pre-Christmas trading and recent acquisitions. This performance led to a 160 percent jump in pro-forma earnings before interest, tax, depreciation and amortisation, reaching AUD3 million.
Q.Has Surfstitch achieved profitability recently?
Has Surfstitch achieved profitability recently?
Yes, Surfstitch recorded a net profit of AUD300,000 for the December-half, excluding one-off costs. This marks a significant turnaround from a loss of AUD1.4 million in the same period of 2014.
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