British fashion brand Superdry is considering a 20% equity raise as it no longer expects to break even in fiscal 2023.

The company is now forecasting its revenue to be in the $771 million to $796 million range, lower than its previous projections.

The news comes after the company’s retail sales in January and February failed to meet expectations as consumers cut down on discretionary spending and poor weather impacted demand for spring-summer items. These challenges also negatively affected the company’s wholesale business.

As the company deals with a slowdown in demand, it is looking to raise funds and cut costs. So far, the company has identified more than $43.4 million in cost savings.

In March 2023, the company also signed a deal to sell its intellectual property assets in the Asia-Pacific region to South Korea’s Cowell Fashion Company for $50 million, according to Reuters. While the deal is still subject to shareholder approval, it has been supported by the company’s lender Bantry Bay.

“We need to ensure our business is in the right shape to navigate these difficult times, which is why we are looking hard at our cost base,” said CEO Julian Dunkerton. “My belief in the Superdry brand is stronger than ever, which is why I’m prepared to provide material support to any equity raise undertaken.”