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Billabong results down, ‘prospects positive’

Published: 27th Feb 2017
Author: Tony Dickson - S&V Editor

Gold Coast (Australia) – Billabong International Limited’s results for the 6 months ended December 31, 2016 showed global group sales 9.5% down, according to an announcement by the Australian Securities Exchange (ASX) on February 24.

        It said total group sales of AUD$508.3 million were down 9.5% year-on-year, and down 7.6% on a constant currency (cc) basis. When the sale of the Sector 9 business is taken into account, revenue was down 5.8% cc.

        The day before this announcement, Billabong announced the sale of another brand, Tigerlily, for AUD$60 million, and said the proceeds would be used to pay off debt.

        It said gross margins were “flat overall; up in Americas, down in the Asia Pacific (APAC) region”.

        CEO Neil Fiske said the group had simplified its business, cut its inventories and cost of doing business, and was seeing “a strong profit lift” in the Americas.
        Asked how the brand was doing locally, GM of Billabong in SA, Ernest Bendeman, said Billabong SA “as a region forms part of APAC as a direct subsidiary, and we do not report down to a regional level as per Billabong International group policy”.

©2017 S&V Publications
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