The Step One Clothing Ltd (ASX: STP) share price has jumped around 5% higher in response to a new product category.
Step One is a direct-to-consumer online retailer for underwear. It offers customers high-quality, organically grown and certified, sustainable and ethically manufactured clothes that suits a broad range of body types.
Women’s line
Step One Clothing has announced it has expanded its product range to include a women’s line.
The company has estimated that over 40% of its exiting customers are women. The launch follows significant demand from its female customers who, as purchasers of men’s Step Ones, requested a similar innovative innerwear product for women.
The initial product line is a boxer short style, which has been tailored specifically for women after feedback following initial testing by existing female Step One customers.
These products are priced at the same level as the equivalent men’s product, with volume discounts applicable to larger cart sizes.
The women’s product has been initially launched in Australia and the UK, which will be extended to the USA later in 2022. This could be very helpful for the Step One share price over time.
Management comments
The Step One Clothing founder and CEO Greg Taylor said:
“I am very excited that Step One has launched its women’s line, a key deliverable in our growth strategy to develop complementary product adjacencies.
“I would like to take the opportunity to express gratitude to our many loyal female customers who not only insisted on a women’s line but also participated in its design and testing.
“I am thrilled that we are continuing to disrupt the innerwear industry by offering women an innovative innerwear solution to help them feel their best every day.”
My thoughts on Step One Clothing and the share price
This move opens up a much bigger total addressable market for the company. Women make up half of the population obviously.
Despite today’s rise, Step One Clothing shares are still almost 40% lower than where it was a month ago. I think it could be worth watching for the long-term, particularly for its international growth potential. It is already expecting to make a positive EBITDA (EBITDA explained).
It’s one of the ASX growth shares on my watchlist right now.
