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Step One Clothing (STP) a high rider?

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    Step One Clothing (STP) a high rider?

    Hi MM Team, Whilst STP is not currently on your radar, the business has had a successful listing just over 12 months ago and growth prospects appear strong with the founder still retaining over 65% of the company. The company has no debt, is growing profitability with a strong GM at 80+% and has just kicked off its international expansion with pleasing early results in the US. What do you think of the stock and could it be added to your hit list? Thanks, Alan

    Answer

    Hi Alan,

    STP is a stock we have done some work on previously. For those not familiar, this is an undie company valued at $344m that has become very popular https://stepone.life/
    When they listed, they were doing sales revenue of ~$70m, which ultimately dipped and has now recovered, with growth in the UK really starting to accelerate, which is the reason why the shares have rallied. For those sailors out there, you might also be interested to see Jimmy Spithill become a promoter of the brand, and shareholder.

    • Technically, the stock looks great and a move above $2 only seems a matter of time. We are now looking at STP more closely again. A few of the insto guys we speak with say many fundies are getting very bullish on the international growth, that is now being experienced from a larger base.
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    Step One Clothing (STP)
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