Small Cap Stocks Down Under 23 December 2022: Step One (ASX:STP)

Step One (ASX:STP) is making big moves on the underwear scene. The company recently expanded to the US market and launched new women’s, thermal and sports underwear lines. Though Step One started out with high expectations, it seemed as if it wasn’t immune from China’s zero-COVID policy. The continuing supply chain and shipping issues of 2022 led to the company missing its forecast revenue. The new women’s line was well received, but the company couldn’t restock until 3 months later. Now it is hoarding nearly $30 million worth of inventory. It also significantly underperformed in the US market, missing its target revenue by 41.9%, so the company is localising its marketing content. With Step One’s shift towards bigger markets, there’s no doubt that there’s room to grow – but will it?