Underwear brand Step One has confirmed that non-executive director Richard Dennis has resigned from its board, effective October 16. The company cited personal reasons for his departure. Dennis, a seasoned corporate advisor with 11 years of board experience, including a tenure on the Cettire board from October 2020 to March 2026, brought valuable expertise across diverse sectors such as property management, health, apparel, motorcycles, and energy.
Dennis joined the board when Step One listed on the ASX in October 2021 and chaired the Audit & Risk Committee. The board, through chair David Gallop, thanked him for his valuable contribution and leadership, emphasizing his highly valued expertise and experience. Catherine Thompson will chair the Audit & Risk Committee on an interim basis until a new independent non-executive director is appointed.
A challenging year for Step One
Dennis’ exit follows a difficult year for the company. Sales fell by 26.7% to $63.7 million in FY26, with a net loss of $7.4 million after a $17.4 million profit in FY25. Founder and CEO Greg Taylor described FY26 as challenging, acknowledging the disappointing financial results. He attributed the decline to subdued consumer spending across markets and a strategic decision to reduce deep discounting, rebuild brand quality, and address legacy inventory issues.
Taylor noted that while these steps were necessary for long-term health, they impacted near-term revenue and earnings. Step One broadened its product range, grew indirect channel revenue by more than 60%, and grew its customer database to more than two million for the first time, all while remaining debt-free.
Focus on long-term growth
As of June 30, 2026, Step One held $25.8 million in cash and financial assets. Taylor highlighted strong margins, with an adjusted gross margin of 75.9%, broadly in line with the previous year and robust by industry standards. The United Kingdom increased its revenue share, supported by investment in localized content and indirect channels.
The company launched six new products across adjacent categories, diversifying its business. However, repeat purchase rates softened as promotional activity was reduced. Taylor emphasized progress against the reset plan, noting it will take more time. Step One enters FY27 debt-free with a strong customer base, providing a solid platform for future growth.
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