Highlights

  • Step One Clothing reported FY26 Revenue of AUD 63.7 million, marking a 26.7% decline against the previous financial year period.
  • Adjusted net profit after tax reached AUD 0.8 million, while statutory results recorded a statutory loss of AUD 6.4 million.
  • The direct-to-consumer underwear retailer expanded its customer database beyond two million, demonstrating the reach of its established online consumer brand.
  • Step One maintained a debt-free operating position as management pursued cost improvements and a reset of its commercial strategy further.

Step One Clothing Limited (ASX:STP), a leading direct-to-consumer online retailer specialising in sustainable and ethically produced underwear, announced its financial results for the year ended 30 June 2026 on 19 August 2026. FY26 was a challenging year for the business, with revenue falling 26.7% to $63.7 million as subdued consumer sentiment and legacy inventory issues weighed on performance.

FY26 Financial Performance

The company reported a statutory net loss after tax of $6.4 million for FY26, compared to a net profit of $12.7 million in FY25. On an adjusted basis, which excludes one-off inventory provisions and restructuring costs, NPAT was $0.8 million. Adjusted EBITDA declined 90.1% to $1.7 million. The gross Margin was significantly impacted by a $10.9 million provision for legacy inventory taken in the first half of the year, which compressed margins from 78% in the prior comparable period to 43% at the half-year stage.

Customer Growth and Brand Resilience

Despite the financial headwinds, Step One continued to build its customer base, with the total customer database exceeding two million for the first time in the company's history. Customer retention remained steady at approximately 65%, supporting management's belief in the brand's long-term resilience. Chief Executive Officer Greg Taylor noted that sales in late 2025 were below expectations, primarily driven by reduced consumer spending and elevated inventory levels. The company launched a strategic reset program focused on inventory normalisation, cost reduction, and disciplined Marketing investment.

Balance Sheet and Outlook

Step One maintained a strong Balance Sheet throughout FY26, operating debt-free with cash and financial Assets providing Liquidity to fund its turnaround strategy. Management has outlined a clear path to restoring profitability through improved inventory management, reduced returns and exchanges, and tighter control over customer Acquisition costs. The company's international markets, including the United Kingdom and United States, remain growth priorities. While FY26 was a disappointing period for shareholders, Step One enters FY27 with a leaner cost base and a renewed focus on sustainable, profitable growth across its direct and indirect sales channels.

Stock Price Information

Shares in Step One Clothing Limited (ASX:STP) have experienced significant Volatility over the past twelve months. As of the Trading session on 6 November 2026, STP shares were trading at $0.145. Investors should refer to the ASX announcements page at www.asx.com.au for the most current pricing and disclosure information.