Billabong swimming against tide

 

BillabongTroubled surfwear retailer, Billabong, has reduced its losses by 73 per cent as it pushes ahead with its transformation plan.

Billabong’s net loss shrank to $233.7 million in the year to June 30, from $863 million in 2012/13.

Revenues climbed 1.6 per cent to $1.2 billion.

Billabong CEO, Neil Fiske, said in the seven months since Billabong announced its latest turnaround strategy, it had stabilised, restructured and refocused its business.

However he stressed that the turnaround was complex, difficult, and still in its early stages.

The biggest challenge the company faced was in the Americas, where trading had been difficult but where signs of improvement were emerging.

Elsewhere, trading in the Asia Pacific and Europe was satisfactory.

“Trading to date in FY15 largely reflects the same themes as have been experienced throughout FY14,” Billabong said.

“As we move through FY15 the company expects to see the impact of the turnaround strategy in the results but it is not possible at this time to quantify the extent of such impact.”

Billabong’s full year loss included significant items such as redundancy costs, non cash impairment charges and fair value adjustments.

Excluding those items and businesses sold off during the year, Billabong’s earnings before interest, tax, depreciation and amortisation fell by more than a quarter to $52.5 million.

Revenues from Billabong’s businesses in the Americas fell to $538 million from $636.8 million, weighed down by drops in wholesale sales in Canada and Brazil.

Comparative store sales in North America fell six per cent in the second half.

Earnings for the Americas dropped to $17.6 million from $38 million.

Elsewhere, revenues rose in the Asia Pacific to $480.5 million while earnings lifted to $34.6 million from $31.9 million.

Revenues in Europe dropped to $199 million from $232 million while losses rose to $8.1 million from $100,000.

AAP

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