Surfstich shares have nose – dived again after another sharp guidance downgrade which left the company facing a full year loss. Shares in the sports retail / online group fell more than 30 percent in the first 10 minutes of trade on 9 / 6 / 2016 after the company said it expected a pro – forma full year earnings loss of between $17.3 million and $18.3 million.
Surfstich has now lost more than 70 percent of it’s value since the start of May 2016, when it downgraded guidance for earnings before interest, tax, depreciation and amortisation from as much as $18 million to as little as $2 million.
The downgrade, which was due to a $20.3 million shortfall in revenue related to a licensing deal, was accompanied by news that Surfstich had promoted chief operating officer Mike Sonnard to chief executive. Surfstich whose shares had been placed in a trading halt on Tuesday 8 / 6 / 2016 said it expects to return to profitability in FY2017.
Shares closed down to 8.5 cents to 32 cents.