Surfwear retailer Billabong has posted a profit for the first time in three years.

Billabong posted a $25.7 million profit in the six months to December 31, compared to a $126 million loss in the same period a year ago.

“A year into our turnaround it’s encouraging to see the group return to profitability for the first time in three years,” CEO, Neil Fiske, said.

The group’s sales in the US rose 9.5 per cent but sales in Australia were down during the Christmas trading period.

AAP