Surfstitch records 40% sales rise in latest six-monthly results

By

Olivier Guyot

Published
Feb 29, 2016

In just a few months Surfstitch has become a highly popular player in the online distribution of board sports brands. Its portfolio consists of the Surfstitch, Swell and Surfdome websites, as well as Magicseaweed and Stab.

The Australian group is listed on the Sydney Stock Exchange and reported a 40% rise in pro-forma sales in the first six months of its 2015-16 fiscal year, ending 31st December. Sales have reached AUD145 million (€94.5 million). EBITDA was AUD13.9 million, a positive result in like-for-like terms.

In terms of regions, Surfstitch's North American operations generated AUD24.1 million, equivalent to a 63% rise, featuring the best gross margin result. In Europe, the group generated sales for AUD65 million, a 39% rise, while in Asia-Pacific it grew 32%, to AUD55.8 million.

For 2016, Surfstitch will rely on a business model combining strong thematic content and several e-commerce platforms. After recording a revenue of AUD199 million in the 2015 fiscal year, the group is targeting a revenue of AUD1 billion within five years. The strategy is reliant on expansion in all of the group's markets, chiefly in North America but in regions such as Asia and South America too.

For its 2016 fiscal year, Surfstitch is aiming for double-digit growth and improved profitability.