Aussie underwear brand Step One just got dacked by the share market after announcing some less than ideal forecasting

The forecast is looking gloomy for Step One this season.

What's the key learning?

Trading halts are a temporary pause of a public company's trading activity.
Generally, this happens before a 'market sensitive' announcement.

👉 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.

🔔 What's the key learning?

💡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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Aussie underwear brand Step One just got dacked by the share market after announcing some less than ideal forecasting

What's the key learning?

🔔 What's the key learning?

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