SurfStitch shares are being crushed

Francisco Leong/AFP/Getty Images

Shares in SurfStitch fell hard after the online clothing retailer announced another profit downgrade.

A short time ago, SurfStitch was down 22% to $0.076, a long way from a high of $2.13 in late 2015.

The company released an update today saying full year losses are now expected to be about double the size since the last estimate in February.

The company is now forecasting an underlying EBITDA (earnings before interest, tax, depreciation and amortisation) loss for the full year of between $10.5 million to $11.5 million, a sharp deterioration from the $5 million to $6.5 million forecast in February and the previous estimate of a $4 million to $5 million loss.

SurfStitch says the retail environment has made it difficult to deliver the planned sales and gross margin improvements as quickly as expected.

Clothing retailers in Australia have been under pressure from emerging competitors online and weak market conditions.

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