Superdry, the high street fashion retailer, saw its market value hit a record low on Tuesday after it issued a profit warning.
The company’s shares fell as much as 32.5% after it reported a 13% drop in retail sales in the 26 weeks to 28 October.
Wholesale sales fell by 41.1% compared to the same period last year.
Superdry continued to blame cost of living crisis among shoppers and unusually mild fall weather, resulting in a delayed release of the fall and winter collection.
The update left shares as low as 28.2p, taking the market value below £40m. for the first time, but they later regained some balance and were down 14% on the day in early afternoon trade.
Superdry, which did not put a figure on the expected hit to annual profits, said it would have more information at the time of its half-year results in January.
But it revealed that sales in the six weeks since the end of the six-month reporting period had fallen by around 7% on a like-for-like basis.
Founder and CEO Julian Dunkerton told investors: “While we have seen modest signs of improvement through the recent period of colder weather, current trading remains challenging.”
The warm, wet autumn has been blamed by many retailers for delayed collection of winter fashion.
Superdry has sought to raise funds and rein in costs by curbing its digital marketing spend and exiting the US wholesale business.
Sky News revealed in October a joint venture with Reliance Brands to accelerate growth in India.