** Shares of Step One Clothing STP.AX fall 6.3% to A$0.3, their lowest level since December 11

** The undergarment retailer posts half-year adj net profit of A$290,000, down 96.5% from A$8.2 million last year

** Shares on track for their weakest day since December 5, if losses hold

** About 767,873 shares change hands, 4.9x the 30-day average of 156,250

** Stock down 13.4%, YTD, including moves in current session

(Reporting by Jasmeen Ara Shaikh in Bengaluru)

((Jasmeenaraislam.Shaikh@thomsonreuters.com;))