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Highlights

  • Step One is an ASX-listed online retailer of innerwear, providing extensive range of innerwear direct-to-consumer
  • In 1HFY24, the company recorded 25.5% YoY increase in revenue to AUD 45.1 million
  • Taylor (Greg) has the maximum stake in the firm with a shareholding of around 66.88%

Step One Clothing Limited (ASX: STP) is a direct-to-consumer online retailer of innerwear, offering an exclusive range of underwear that suits a broad range of body types. The e-commerce firm provides a selection of underwear and innerwear made from certified materials.

In the first half of the financial year 2024 (1HFY24), the company reported revenue of AUD 45.1 million, up 25.5% over 1HFY23, driven by an increase across all markets during the reported period. Meanwhile, EBITDA reached AUD 10.1 million, up 35.6% over 1HFY23. The period saw 34.7% YoY jump in NPAT to AUD 7.11 million.  

As of 31 December 2023, the company’s cash balance stood at AUD 43.9 million with zero debt.

Growth prospects for consumer discretionary stocks

The data released by the Australian Bureau of Statistics (ABS) on 18 July 2024, revealed that in June 2024, the number of employed people increased by 50,200, surpassing the growth of 39,700, recorded in May 2024. With increase in employed individuals, participation rate of Australia jumped 66.9% in June, up from 66.8% in May. The surge in employment is expected to benefit the consumer discretionary stocks.

Top 10 shareholders of STP

The top 10 shareholders of STP have around 73.96% shareholding in the company. The maximum stake in the firm is held by Taylor (Greg), with a shareholding of around 66.88%, followed by Reddie (Michael), with a shareholding of nearly 3.58%. 

Outlook

In FY24, the company expects to deliver revenue of AUD 84 million, representing a rise of 29% over the previous corresponding period. The EBITDA is anticipated to touch AUD17 million in FY24, reflecting more than 42% growth over FY23.

Share performance of STP

STP shares closed 3.68% higher at AUD 1.69 apiece on 29 July 2024. In the last one year, STP’s share price has recorded a rise of 382.86%, and in the last six months, it has gained almost 47.60%.

52-week high of STP is AUD 1.945, recorded on 12 March 2024, while 52-week low is AUD 0.33, recorded on 1 August 2023.

STP Daily Technical Chart, Source: REFINITIV

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 29 July 2024. The reference data in this report has been partly sourced from REFINITIV.