Step One Clothing (ASX:STP) expects revenue in the range of AU$30 million to AU$33 million for the first half of fiscal year 2026, down between 31% to 37% from last year, according to a Thursday filing with the Australian bourse.

Earnings before interest, taxes, depreciation, and amortization (EBIDTA) are expected to be at a loss in the range of AU$9 million to AU$11 million, compared to a profit of AU$11.3 million the previous year, the filing said.

The company's efforts to clear older and slower-moving inventory were not successful, and it has raised AU$10 million obsolescence provision against this stock, the filing added.

It has withdrawn its EBITDA guidance for fiscal year 2026, and does not expect to update the guidance at this stage, the company said.

Shares of the company fell 40% and earlier hit a 52-week low.