The Best & Less Group Holdings Ltd (ASX: BST) share price is well in the green this morning following the release of the company's FY22 results.
At the time of writing, the clothing retailer's shares are trading 4.96% higher at $2.75 apiece after hitting a high of $2.81 a share shortly after market open.
Let's check the company's results.
Best & Lest shares lift as online sales grow
Key takeouts from the company's earnings include:
- Revenue of $622 million, down 6.2% from $663 million
- Like-for-like (LFL) sales, also known as same-store sales, were down by 0.7% year on year, but up 9.1% versus FY20
- Online sales growth of 15.6% versus this time last year to $69.7 million
- Gross profit margin of 49.1%, stemming an EBITDA margin of 10%
- Pro forma EBITDA of $62.5 million compared to $71.6 million in FY21
- Net cash position of $36 million
- Final dividend of 12 cents per share declare, fully franked dividend yield of 8.8% based on 29 August closing price
- Total dividend of 23 cents per share for FY22
What else happened this period for Best & Less?
Despite numerous challenges affecting supply chains and overall product supply, notwithstanding COVID-19 headwinds, the company grew its gross margin 20 basis points year on year.
Online sales were the standout with around a 16% year-on-year gain that also contributed around 11% of total sales, up from 9.2% the year prior.
Growth also benefited from a strong performance from the company's core non-discretionary product lines. These continue to drive significant volume for the business, Best & Less said.
Meanwhile, a 12 cents per share dividend was declared on a roughly 80% payout ratio. This brings the total dividend to 23 cents per share for FY22.
Management commentary
Speaking on the results, Best & Less chief executive officer Rodney Orrock said:
After losing over 21% of total trading days in the first half due to COVID-related store closures, I am pleased to report a strong second half performance. Our team kept their eyes on the ball, doing a great job to control the things that could be controlled, delivering significantly higher sales and strong margins, while continuing to provide superb service to our customers.
What's next for Best & Less?
The company has started FY23 well. It said:
Through eight weeks of trading in H1 FY23, total sales were +38.0% on the [prior corresponding period] PCP. LFL sales were +1.4% overall, with store LFL sales +7.5% and online sales -29.1%, noting that sales in the PCP were impacted by lockdowns and trading restrictions in several states.
Best & Less share price snapshot
The Best & Less share price is down almost 33% this year to date but only 2.5% lower than this time last year.
The company's share price has climbed 17% in just the last month.
Best & Less has a current market capitalisation of around $346 million.
