These results are really good : + 39 % for sales and + 70 % for EBITDA. Almost all the EBITDA was also turned into cash flow from operation (98 % conversion vs 72 % 1 year before). So, the company has been able to generate 99.5 m of free cash flow (after lease) which is really significant for a company with a market cap of 1,260 m (and 1,773 m if you include all the leases in the EV).
It also explains why the company decided to distribute 12 c of dividend, while their diluted EPS was only 10.5 c. It corresponds to a distribution of 66.3 m $ or 2/3 of the free cash flow.
Margins seem to be driven by the fact that the company is selling a lot at full price (gross margin increased by 190 bp), while marketing expenses were quite limited (+ 6 % vs + 39 % for revenues).
"Many of our brands target a younger customer demographic who tend to be les impacted by interest rates and cost of living pressures". What the CEO said today is confirmed by the good results of retailers focused on younger customers : cf also Cettire, Universal store and Lovisa.
AX1 Price at posting:
$2.30 Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)