Step One Clothing’s net profit grew despite a decline in new customers in the first half.

The online underwear retailer’s net profit soared 15.1 per cent to $8.2 million while revenue rose 6.8 per cent to $48.1 million.

Earnings before interest, taxes, depreciation, and amortisation (EBITDA) increased 10.4 per cent to $11.2 million but gross margin slid to 78 per cent.

During the period, sales to new customers dropped 28 per cent to $131,000.

“While customer acquisition softened, strong retention rates and increased order values underscore the effectiveness of our strategy,” said Greg Taylor, Step One founder and CEO.

“We remain focused on balancing sales growth with profitability and will continue to adapt quickly to market conditions.”

By region, Australia revenue climbed 17.4 per cent to $30.8 million while UK revenue went up 7 per cent to $15.7 million.

However, US sales plunged 61.4 per cent to $1.6 million as the company reduced spending due to “unfavourable advertising economics”.

The company did not provide guidance for the current fiscal year.

Last fiscal year, Step One’s net profit soared 43.9 per cent to $12.4 million amid higher revenue across all its geographies and channels.