(MENAFN- ProactiveInvestors) MySale (LON:MYSL) the fashion website backed by Topshop supremo Sir Philip Green and Sports Direct's Mike Ashley lost half its value today on a profits warning.
Tougher trading conditions in its home markets of Australia and New Zealand will see profit-before-tax fall short of market expectations it said sending its share price plummeting 48% to 90p.
The firm has had a torrid time since floating on the London Stock Exchange in June.
Shares tumbled by as much as 27% on its opening day after they were incorrectly listed in pounds rather than pence while after today’s statement the price tag on the business dropped to £133mln compared to £340mln when it listed.
The business is run by bothers Jamie and Carl Jackson who founded the firm seven years ago in Sydney.
It has agreements with over 2500 brands and retailers who sell surplus or out-of-season stock on its websites. The company has more than 15.5mln members worldwide.
Sports Direct founder Mike Ashley joined fellow retail tycoon Sir Philip Green in buying a stake in MySale after the IPO.
Green owns 25% of the business while Sports Direct has a 4.8% stake.
Overall the group's revenues year-on-year in the five months to 30 November were 4% higher than the previous year.
Asia saw revenues rise year-on-year by29% while the UK also performed well but a weaker economic outlook for Australia and New Zealand dented earnings.
The retailer added that it has pumped in around A$9mln in its existing markets to help stimulate growth.
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