Australian underwear brand Step One just just told shareholders it is projecting a decent drop in its half year revenue, alongside a EBITDA trading loss for the half.
Based on year-to-date trading, including estimates for December, Step One expects first half revenue to land between $30 million and $33 million, representing a decline of between 31 per cent and 37 per cent on the prior corresponding period.
Earnings before interest, tax, depreciation and amortisation (EBITDA) is also expected to be in loss territory, between $9 million and $11 million.
Step One added the EBITDA loss includes a $10 million provision for inventory obsolescence.
“The recent sales results were materially below expectations, and our efforts to clear older and slowermoving inventory were not successful,” the company shared. “As a result, the Company has raised a $10 million obsolescence provision against this legacy stock. This inventory is now fully provisioned, and no further material provisions are anticipated at this stage.”
Step One added that the combined impact of softer sales and this one-off inventory provision has led the company to reassess its full-year outlook. As the implications of these factors are still being evaluated, the FY26 EBITDA guidance previously provided has been withdrawn, and no updated guidance has been issued.
Step One confirmed it will update the market once greater visibility over trading and inventory outcomes is available.
“These estimates are preliminary and subject to trading conditions over the remainder of the reporting period, including pre- and post-Christmas sales, foreign exchange movements, and logistics timings. The financial results remain subject to auditor review.”
Step One plans to report its first half results on February 18, 2026.