More than $23 million has been wiped from the market value of online retailer Surfstitch after it warned it will post an annual loss.
The company's shares fell 21 per cent after it downgraded its earnings forecasts for the second time in just over a month, which has it on track for a pro-forma annual earnings loss of between $17.3 million and $18.3 million.
Surfstitch has now lost more than 70 per cent of its market value since May 3, when it first downgraded its earnings guidance, from an original forecast of up to $18 million.
The latest downgrade has been caused by a $20.3 million shortfall in revenue from a licensing deal.
In May the company said trading conditions had become more challenging, meaning its advertising costs would rise.
Surfstitch shares dropped 8.5 cents to 32 cents on Thursday, reducing its market value to $88.3 million.
The company said it expects to return to profitability in 2016/17.
It has also promoted chief operating officer Mike Sonand to chief executive, just a month after he joined the company.
He will replace joint CEOs Lex Pederson and Justin Stone, who will now become director of business development and director of global support, respectively.
"Mike has already had a very positive impact on the leadership team," chairman Howard McDonald said.
"He has already demonstrated a firm grasp of the company's immediate priorities and growth initiatives."
Mr Pederson and Mr Stone were appointed joint CEOs after the surprise departure of Justin Cameron in March.
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