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Step One Clothing Limited (ASX:STP)

ALERT: Price-sensitive ASX Announcement for STP
Current share price for STP : $0.145 -0.175 (-54.69%)+
Announcement
Release
18 Feb 2026 8:25AM
Price at Release
$0.320
Full Release
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Summary
Step One Clothing Limited announced their 1H26 financial results, highlighting a revenue of $36.3 million, a significant drop from $48.1 million in 1H25. The company reported an EBITDA loss of $10.0 million, largely due to a $10.9 million inventory obsolescence provision. Adjusted EBITDA was $1.0 million when excluding this provision. The net loss after tax was $8.5 million, contrasting with an $8.2 million profit in the previous year. Despite these challenges, Step One maintains a strong financial position with $24.0 million in cash and no debt. CEO Greg Taylor emphasized the need for their reset program to address sales declines, focusing on reducing discount depth, enhancing product innovation, and improving brand perception. Customer retention remains strong at 65%. The company is not providing full-year earnings guidance as they navigate this transition phase.
Key Points
  • Revenue for 1H26 was $36.3 million, down from $48.1 million in 1H25.
  • EBITDA loss of $10.0 million due to $10.9 million inventory obsolescence provision.
  • Adjusted EBITDA was $1.0 million, excluding the inventory provision.
  • Net loss after tax of $8.5 million, compared to an $8.2 million profit in 1H25.
  • Company holds strong financial position with $24.0 million cash and no debt.
  • CEO Greg Taylor highlights the urgency of their reset program.
  • Focus on reducing discount depth, enhancing product innovation, and improving brand perception.
  • Customer retention rate remains at 65%.
  • No full-year earnings guidance provided due to the transition phase.
IMPORTANT NOTE: This information is autogenerated and has not been reviewed for accuracy or completeness. You should refer to the full announcement here for further information.