Step One Clothing is expecting earnings before interest, tax, depreciation and amortisation (EBITDA) to increase by up to 27% to $11.5 million in FY23.
In a trading update, the innerwear company anticipated revenue to fall 10% below the prior financial year, where it generated $72.2 million.
Step One founder Greg Taylor said the business would prioritise effective management of costs, including advertising spend.
“In the second half of FY23, we have continued to successfully pivot from prioritising top-line growth to concentrating on profitability in response to the ongoing challenging trading conditions in our key markets.
“I continue to be confident in the significant opportunity ahead to build our position as a leading global brand for innovative, sustainable and quality innerwear products, which we are well positioned to take advantage of growth as macroeconomic conditions ease.”
All numbers are unaudited and subject to variations in foreign exchange and trading conditions over the period remaining in FY23. FY22 EBITDA is proforma.