Underwear brand Step One has faced a “challenging” FY25, which has slowed momentum in sales and hampered on the bottom line.
The brand’s unaudited FY25 revenue hit $86.9 million, up 3 per cent from $84.5 million in FY24, with net profit also lifting by just 1 per cent to $12.6 million.
However, earnings before interest, tax, depreciation and amortisation (EBITDA) fell 4 per cent to $17.4 million, with cash and financial assets slipping down by $6 million to $33 million.
The slight bump-up in revenue over the last financial year follows a near 30 per cent lift in sales in FY24 compared to FY23. It also follows a 50.8 per cent lift in EBITDA and a 43.9 per cent rise in net profit.
Step One founder and CEO Greg Taylor said the latest financial year was challenging, adding that subdued consumer spending and ongoing cost-of-living pressures continuing to weigh on discretionary spending.
“Customer purchasing behaviour has become increasingly reliant on sale events and promotions, which has impacted overall trading momentum and led us to adopt a cautious approach to marketing investment,” Taylor said.
“Throughout this period, our product quality and strong customer loyalty have continued to set Step One apart in a competitive market and provide a firm foundation as we navigate these testing times."
Further information will be shared at Step One’s audited FY25 results, set to be released on August 20, 2025.