Superdry Plc reported widening losses after Christmas sales failed to revive performance at the struggling fashion retailer.

The British brand, known for its logo T-shirts and bright colours, said mild weather and heavy discounting in the sector hit sales. Superdry, which also announced the departure of its chief financial officer, already said in September that it expects no revenue growth in the current year.

The stock, which had fallen 89 percent in a year, rose 2.5 percent in early trading after the retailer avoided another downgrade.

The company issued a profit warning last month, saying that performance was “significantly below” management expectations after a mild autumn and a late start to its end-of-season summer sale. Superdry is said to have hired advisers at PWC to seek out debt-raising options. The business already has expensive borrowing from lenders of last resort including Bantry Bay Capital and Hilco Capital Ltd.

Julian Dunkerton, Superdry’s CEO, said in the statement that Christmas trading had proved challenging, and he did not expect market conditions to improve in the near-term.

Superdry’s adjusted loss before tax grew to £25.3million ($32.1 million) in the first half, compared with around £14 million a year earlier.

The company also announced that CFO Shaun Wills will stand down at the end of March, with an interim, Giles David, joining the business at the end of January.

By Sabah Meddings and Katie Linsell

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