** Shares of Step One Clothing STP.AX fall 2.1% to A$0.685
** Bell Potter trims price target to A$1.25 from A$1.3, maintains "buy" rating
** Brokerage also downgrades revenue forecasts for the online retailer by 2% for fiscals 2026 and 2027
** Bell Potter says co's FY trading update was exemplary of the current retail environment; still recording modest sales growth, however giving up gross margin to get it
** Flags FY25 EBITDA expectation was a miss, down 4% from last year vs brokerage estimate of a 1% increase
** Bell Potter continues to view stock as an attractive buying opportunity and believes it continues to trade subdued given prolonged macroeconomic concerns on the consumer
** Stock down 45.4% YTD, including the day's moves
(Reporting by Nikita Maria Jino in Bengaluru)
((Nikita.Jino@thomsonreuters.com;))