ASX shares are having a fairly pleasant day of trading so far this Tuesday. At the time of writing, the All Ordinaries Index (ASX: XAO) is up a solid 0.32% at around 7,350 points. But the Step One Clothing Ltd (ASX: STP) share price is doing a little better.
Step One shares are today enjoying a whopping gain. The clothing company is presently up an eyecatching 28.57% at 27 cents a share after closing at 21 cents yesterday and opening at 22 cents this morning. And that's after the company rose as high as 29 cents earlier today – a rise of 35% at the time.
So what's behind these seemingly enriching gains? Well, things aren't quite as bright as that headline figure might let on. Yes, Step One is up nearly 30% today. But that only comes after the company crashed a painful 56% or so when it returned to trading yesterday. A week ago, Step One Clothing was a 50 cents per share company. But Step One's shares were halted from trading on Thursday last week.
Image source: Getty Images
Step One share price steps back up
This was to allow the release of a trading update yesterday. As my Fool colleague James covered at the time, Step One informed investors that its expansion into the United Kingdom, United States and women's products hadn't exactly been going to plan. Previously, the company had flagged that it expects revenues for FY2022 to grow at between 21% and 25%. Now, it only expects growth of between 15% and 20%.
This announcement seemed to be behind the massive share price crash in Step One shares yesterday. But it appears some investors may have thought things went too far, and have bid Step One shares back higher today. No doubt shareholders will be more than a little relieved. Even so, the clothing company remains down by nearly 82% in 2022 alone, and by 90% over the past year.
At the current Step One share price, this ASX share has a market capitalisation of $88.96 million.
