• Revenue of $86.9 million, up 2.8% on pcp
• EBITDA of $17.4 million, down 3.7% on pcp
• Net profit of $12.7 million, up 2.0% on pcp
• Strong financial position with cash and financial assets of $33.1 million and no debt

Step One Clothing Limited (ASX:STP), a leading online direct-to-consumer underwear brand, has announced its financial results for the year ending 30 June 2025 (FY25). The company reported revenue of $86.9 million, up 2.8% on the prior corresponding period (FY24: $84.5 million). EBITDA was $17.4 million, down 3.7% on pcp (FY24: $18.1 million), while net profit after tax (NPAT) increased by 2.0% to $12.7 million (FY24: $12.4 million). Step One maintained a strong financial position, with cash and financial assets of $33.1 million and no debt. The company's founder and CEO, Greg Taylor, noted that the broader retail sector faced a challenging environment in FY25, with elevated promotional activity and discounting required to maintain market share. Cost of living pressures and inflation dampened consumer confidence and discretionary spending, leading Step One to reduce marketing investment in the Australian market to maintain profitability. The UK market was a key focus, delivering 8.7% revenue growth for the year, driven by a refreshed marketing approach. Looking ahead, Step One is refining its tactical execution and implementing adaptive measures to navigate the challenging retail landscape, including pricing realignment, a refined promotional approach, inventory optimisation, accelerated brand investment, and a focus on product development. While these initiatives are expected to impact financial performance in the near term, the company remains confident they will position Step One to respond effectively to market conditions and establish a stronger foundation for sustainable, profitable growth when conditions improve.

FY26 EBITDA is expected to be in the range of $10 to $12 million, reflecting the company's adaptive initiatives and deliberate investments in brand building, product expansion, and inventory optimisation.

Step One will continue to be guided by its profitable growth strategy, centred on four key pillars: expanding the product range; acquiring new customers through targeted marketing and strategic partnerships; pursuing profitable growth opportunities across all markets; and testing and developing new channels where meaningful traction can be achieved, while maintaining operational discipline.