How fuchsia and lychee undies are reviving Step One

afr.com:

The boss of “no-chafing” underwear group Step One says it will be a “slow and steady” recovery for the online retailer which dialled back its United States expansion plans and expanded into women’s underwear.

Step One shares have gained more than 50 per cent in the past two weeks to 63¢ since the company unveiled a solid turnaround to an annual net profit after tax of $8.6 million, from a loss of $3 million a year earlier.

Greg Taylor, the CEO of online underwear group Step One. 

Chief executive and founder Greg Taylor said the group would have to keep showing steady progress to win back more confidence. But the momentum has swung in the right direction after a horror stretch that began in mid-2022. Bright colours were proving popular in a tougher economy where underwear was so far proving recession-proof, he said.

“We certainly do take the approach that it’s a slow and steady recovery,” Mr Taylor said.

Step One listed in a blaze of glory in late 2021 with an issue price of $1.53 but crashed in mid-2022 and by mid-June this year was languishing at just 23¢. But some hard-headed decision-making which included slowing a push into the US, and the success of an expansion into women’s underwear brought improvements. He said fuchsia-coloured underwear, a pink-purple colour based on the flower, was proving very popular in the women’s category. In men’s underwear, bright colours including lychee and bubblegum were big sellers, along with traditional black.

“We’ve been able to navigate the headwinds and the crosswinds”.

Mr Taylor acknowledged the cost-of-living pressures that had hurt retailers and hit discretionary spending in the past few months.

But he said underwear was one category that was largely immune.

“It is a staple