Surfstitch slashes earnings guidance, appoints new CEO

By

Benjamin Fitzgerald

Published
Jun 9, 2016

Australian apparel and sports e-commerce platform Surfstitch has slashed its full-year earnings guidance for a second time amid ongoing revenue woes.

While trading conditions are unchanged, revenue is expected to be $20.3 million less than originally forecast due to an issue with a licensing deal, the company said in an announcement to the market today.

SurfStitch now expects pro-forma EBITDA for full-year 2016 to be a loss, falling between $17.3 million to $18.3 million.

The company originally forecast full-year earnings before interest, tax, depreciation and amortisation of at least $15 million but revised that down to $2 million last month.

While trading conditions are unchanged, revenue is expected to be $20.3 million less than originally forecast due to an issue with a licensing deal, the company said in an announcement to the market today.

The firm appointed Mike Sonand to the role of CEO with the current chief executives Lex Pedersen and Justin Stone shifting to other aspects of the business.

Pedersen moves to business development director while Stone is now the global support director.

SurfStitch said it expects to return to profitability and be cash-flow positive during full-year 2017.