Step One half-year loss prompts call for ‘urgency’ in reset

Harry Booth

18th Feb 2026

Online clothing retailer Step One has reported its first-half results for the 2026 financial year, as the company’s CEO said the figures were “below our expectations”.

With revenue falling by 24.5 per cent to $36.3 million and a net profit after tax (NPAT) decline of 203 per cent to minus $8.4 million, Step One’s adjusted NPAT of $290,000 paints a troubled picture for the business.

“Sales in late 2025 were below our expectations, primarily due to slower-than-expected clearance of legacy inventory despite promotional activity,” Step One founder and CEO, Greg Taylor, said. The company has taken a $10.9 million provision against its stock.

Founded in 2017, Step One is known for its bamboo-based ‘anti-chafing’ underwear.

“This result has reinforced the urgency of our reset program, which is tracking to plan. We are moderating discount depth, focusing on value-led product innovation, and restoring brand quality perception,” Taylor added.

The company, however, defends its “strong financial position”, citing cash and financial assets of $24 million with no debt accrued.

“Our customer retention has remained solid at 65 per cent, positioning Step One well to capture new opportunities as we broaden our product range, invest further in brand awareness, and work to make our offer more accessible to new customers,” Taylor said.

“Given the transition phase of the business, we are not providing full-year earnings guidance at this stage.”