Australian underwear brand Step One has issued a pause in trading today as the company's founder and CEO Greg Taylor sells down a portion of his shares.
Taylor has agreed to sell down 16,632,352 fully paid ordinary shares in the company, representing approximately 8.97 per cent of issued capital. The business' director and chief legal officer Michael Reddie will also sell down 2,014,206 shares in the company.
Both sales are based at a price of $1.70, with Taylor's sell down portion worth approximately $28.2 million.
Following the sale, Taylor still owns a majority stake in the business at 57.91 per cent. In an ASX release today, the founder confirmed his commitment to his role and his intent to remain a long-term substantial shareholder.
Taylor and Mr Reddie have agreed to escrow their remaining shares until the release of the company’s full year results for the financial year ending June 30, 2025.
“I am excited about Step One’s growth opportunities and continue to be as committed and driven to achieve our global growth ambitions," Taylor said. "As we continue to execute on our strategy, it’s encouraging to see interest from new, long-term investors wanting to be part of our growth journey.
"The sale represents a small portion of my shareholding, and I will remain Step One’s largest shareholder with approximately 57.91 per cent. The decision to sell was driven by strong investor demand and enhances liquidity and free float broadening the share register.”
The latest news follows a strong year in sales and profit, with Step One’s FY24 revenue hitting $84.5 million, up 29.7 per cent on FY23.
The company’s earnings before interest, tax, depreciation and amortisation (EBITDA) was up 50.8 per cent in the same time frame to $18.1 million, with net profit up 43.9 per cent to $12.4 million.
There was also a lift in new customers, up 312,000 to a total of 1.6 million globally, with net cash closing at $39 million as of June 30 and no debt.
Commenting on the FY24 results which were initially released on August 21, Taylor said underwear is a “need-based acquisition” that solves functional problems and building a product people trust is essential.
“Due to our sustained delivery of products that resonate with consumers, we’re well placed to continue expanding our strategic growth initiatives, win market share in our core markets, and expand into adjacencies,” Taylor said.
During the financial year, Step One expanded its women’s offering through the launch of its SmoothFit Women's line. Taylor said the women’s line revenue grew by 54 per cent in FY24 and now accounts for around 14 per cent of total revenue.
“We expanded our partnerships and channels in FY24 and in doing so increased our visibility to new customers,” Taylor added. “We partnered with Surf Life Saving Australia (SLSA) with a bespoke branded range of underwear from which SLSA earned over $250,000.
“We also continued our partnership with one of the UK’s most respected retailers, John Lewis, which positions our brand alongside globally recognised brands.
“Lastly, we partnered with one of the world’s most sustainable sporting events, Sail GP, through sponsoring the Sydney race.”
Step One’s largest market in Australia, making up $50 million of the overall $84 million revenue, followed by the United Kingdom at $27 million and an emerging market in the United States at $6.5 million.
Looking ahead, Step One reported key focuses, including penetrating new markets in Canada and Germany, new adjacent categories, and major wholesale opportunities with the likes of Amazon and John Lewis businesses.