The surf is not looking good for Surfstitch with the company posting an $8.3 million loss in its half year results to December 2016, with more to follow in the fiscal year.
The disappointing loss for Surfstitch has narrowed since last year this time, when it posted a $14.5 million loss, with its sale of Surf Hardware International sited as a major driver behind this.
The online surf and sportswear retailer posted a 13.1 percent drop in revenue to $106 million, according to Mike Sonand, the company’s chief executive, while confirming the company is still building its international foothold.
“We are building a solid foundation on which to operate our global business,” said Sonand this morning at Surfstitch’s half year results announcement
The Group revealed a $1.5 million loss EBITDA (earnings before interest, tax, depreciation and amortisation) for the first half, which Sonand says it expects to blow out further to $5 million to $6.5 million by full year 2016/17, which is worse than it initially expected ($4-$5 million).
“SurfStitch Group experienced trading headwinds in the last few weeks of December and into January and February, similar to other retailers.”
“Cost control initiatives have mitigated some of the impact of these difficult trading conditions and will continue to be carefully managed to deliver on underlying EBITDA closer to the lower end of the updated forecast range.”