Step One - 1H24 Trading Update

ASX Code: STP 18/12/2023


Step One Clothing Limited's 1H24 Trading Update - Essential Information

Step One Clothing Limited (ASX: STP), an online direct-to-consumer innerwear brand, recently issued a trading update for the first half of the 2024 financial year (1H24). Here are five key points from the update:

  1. Revenue and EBITDA Projections: Step One expects 1H24 revenue to be between $44 million and $45 million, a growth of 22% to 25% compared to the prior corresponding period (1H23: $35.9 million). The company also anticipates EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) to be in the range of $10 million to $11 million, up from $7.5 million in 1H23.

  2. Geographical Revenue Growth: The update highlights revenue growth across all geographies where Step One operates, including Australia, the UK, and the USA. Notably, the USA showed the highest percentage growth rate followed by the UK.

  3. Estimation Factors and Reporting Date: The reported figures are estimates, subject to changes in trading conditions, including pre-and post-Christmas sales, foreign exchange rates, logistics timings, and other variables. The financial result is also pending auditor review. Step One plans to report its finalized 1H24 financial results on 20 February 2024.

  4. Use of AI in Marketing: Step One has implemented AI tools to enhance marketing efficiency. These tools assist in generating campaign concepts, TV advertisements, script ideation, and copy creation, specifically tailored to target demographics. This approach has enabled rapid testing and optimization of marketing content.

  5. AI Integration and Business Operations: The integration of AI into Step One's business operations is an ongoing initiative. Future plans include extending AI application beyond marketing to stock forecasting and inventory management, aiming to further improve business efficiency and optimization.

This note was based on facts from the company update dated 18/12/2023.

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