Troubled online clothing retailer Surfstitch has lowered its full-year earnings expectations after posting a narrowed $8.3 million half-year loss.
Surfstitch said it experienced "trading headwinds" from late December through to February and downgraded its full-year earnings guidance to an underlying loss of $5-$6.5 million, from the previous forecast of a $4-$5 million loss.
The loss for the six months to December 31 of $8.3 million was down from $14.5 million a year earlier.
Revenue for the half was down 13 per cent to $106.3 million, which the company attributed to a stronger Australian dollar and lower sales in the North American market.
Chief executive Mike Sonand, who was appointed last June following the surprise exit of founder and CEO Justin Cameron, said the company had made progress containing costs and was "building a solid foundation" to operate the global business.
The company has also announced a "retention equity incentive award" to Mr Sonand, who will receive three million performance rights under the plan, which the board says is in recognition of his work to "stabilise and refocus" the company and to secure his continued performance.
Surfstitch shares were flat at 18 cents at 1020 AEDT, roughly at the level they have sat at for the past eight months and well down from their high above $2 in November, 2015.
SURFSTITCH STILL IN CHOPPY WATERS
* Half-year net loss of $8.3m, improved from $14.5m in previous half
* Half-year revenue $106.3m, down 13pct
* No interim dividend
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