Surfstitch has gone into a trading halt while the online clothing retailer prepares on update on its earnings.
Shares in SurfStitch crashed 50% last month after issuing a profit warning.
The retailer then said it anticipated EBITDA (earnings before interest, tax, depreciation and amortisation) for the full year to be between $2 million and $3 million. Half-year profits were $5.7 million.
Today the company told the ASX: “The trading halt is necessary to allow SurfStitch to provide the market with a further update on its anticipated pro-forma EBITDA for the year ending 30 June.”
SurfStitch is in the middle of a transformation program including rebranding its ecommerce businesses to a single global brand, SWELL.
This is part of a strategy to create a digital content-driven ecosystem to engage audiences at every stage of their action sports lifestyle.
The company’s management was restructured after the surprise departure of CEO and co-founder Justin Cameron in March.
The surf and skateboard clothing company then said it understood Cameron was pursuing a potential acquisition of the business in conjunction with private equity.
The company in May said the integration of companies acquired over the last year has been slower than anticipated and the benefits lower than expected.
The retailer bought a surf weather site, Magicseaweed, and a global online news magazine, Stab Magazine, for $13.8 million cash and 4.8 million shares.