Australian innerwear brand Step One Clothing Limited is expecting to make a $19 million lift in overall revenue for FY24 to $84 million, representing a 29 per cent growth in last financial year.
Alongside this, the direct-to-consumer brand is also projecting a $5 million lift in earnings before interest, tax, depreciation and amortisation (EBITDA) to $17 million, a jump of over 42 per cent.
Step One founder and CEO Greg Taylor called it another year of profitable growth for the business.
“Our high-quality sustainable innerwear products, in-house marketing capabilities and brand ownership continue to resonate well with customers,” he said. “With a strong financial position, we are well positioned to continue expanding our customer base, establish new retail partnerships and grow our brand presence globally.
“I remain very confident that Step One is in a strong position to continue its profitable growth.”
According to Step One’s first half trading updates, the full-year boom for the innerwear brand comes following a wholesale pilot launch in December 2023 in the United Kingdom through national retail business John Lewis. This drove a 38 per cent lift in its half-year revenue in the country by 38 per cent.
During the first-half, Step One connected with a new third-party logistics in the UK. This additional 3PL will focus on the fulfilment of sales made through John Lewis and increase fulfillment capacity for other sales channels over the long term.
Although inventory duplication is necessary, Step One noted that in these initial phases, the value is not material and is restricted to ‘core’ inventory SKUs. The new 3PL held less than $0.1 million of inventory as at 31 December 2023.
Meanwhile, in the US, Step One recorded a 256.2% lift in revenue to $4.13 million for the first half. This was mostly driven through online sales, however, a small portion came through its wholesale deal with Amazon.
In Australia, revenue was up 8.9 per cent to $26.2 million in the first half.
Step One plans to report its FY24 financial results on 21 August 2024. The full-year financial results remain subject to audit.