STP -56.25%: online undie retailer took a knife to earnings expectations today, sending the stock plummeting. They closed 86% below where they IPO’d last November at $1.53. Revenue guidance was lowered from 21-25% growth down to 15-20%, and EBITDA expectations were cut 50% to $7-8.5m ahead of their first full-year result. The downgrade was blamed on slower than expected growth in the US and UK as well as slowing sales of their female line. While they have passed on some price increases, margins aren’t expected to grow with warehousing and marketing costs coming through. The low end of updated guidance would mean a negative EBITDA contribution in the second half.
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