The forecast is looking gloomy for Step One this season.
👉 Background: Step One is an Aussie underwear brand that launched in 2017. They're known for their promises of no riding up or chafing 🙅 and their hilarious TV ads.
👉 What happened: The company just gave a hairy trading update. Its forecasted sales are now in the range of 15-20%, instead of the 21-25% previously expected. And, its forecasted EBITDA has been cut pretty much in half.
👉 What else: Step One entered a trading halt just before the update. After it came out of the halt, shares tanked almost 60%, with the company losing $40 million in market cap.
💡Trading halts are a temporary pause of a public company's trading activity. In other words, you can't trade that company's shares during the halt.
💡Generally, trading halts happen ahead of an announcement the ASX thinks is 'market sensitive', AKA info that could affect the company's share price.
💡This could be exciting stuff like a merger or acquisition, sale, or a juicy earnings update. Alternatively, it could be for some absolute shocker results like Step One's.
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