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% in a year, rose 2.5% 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 PricewaterhouseCoopers 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 chief executive officer, said in the statement that Christmas trading had proved challenging and that he did not expect market conditions to improve in the near term.

Superdry’s adjusted loss before tax grew to £25.3 million in the current period’s 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.