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Underwear label Step One downgrades outlook

Step One, the listed Australian online innerwear retailer, is revising its revenue forecasts, citing global macro-economic disruptions and difficult trading conditions. 

In a trading update for the period to June 30, the business says it now expects sales growth to be between 15-20 per cent as opposed to previous guidance of 21-25 per cent. EBITDA is estimated to be $7-$8.5 million, down from $15 million. 

The business’ gross profit is closer to last year’s levels despite the recent increase in selling prices. Revenue growth in the US and the UK has not met expectations but Australian operations have performed well this year. 

The company’s women’s range has failed to meet daily sales goals. 

Factory to warehouse logistics costs have increased due to recent inflation linked to the political climate in Ukraine and Covid-related lockdowns in China.

Step One founder and CEO Greg Taylor said the team is focused on solving the issues at hand and introducing new innerwear product lines.

“We’ve continued to make operational progress, focusing on a tailored marketing strategy in each region, driving engagements with influencers and athletes in the UK and US. We’re selling some of our core products on Amazon in our key markets to drive our brand visibility and support customer acquisition,” he said. 

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