Billabong returns to profit in H1
- H1 net profit AUD25.7m (US$20.1m), versus AUD126.3m loss
- Revenues down 0.5% to A$522.1m
- Turnaround still in early stages
Fiske said there is still "significant" operational reform to be undertaken
Ailing surfwear business Billabong International returned to profitability in its first half, but cautioned that the company’s turnaround strategy remained in its early stages.
Revenues dipped slightly in the six months to 31 December, as sales in Asia Pacific and Europe fell 1.5% and 0.5% respectively, offset by a 0.9% revenue increase in the Americas.
Billabong said its European EBITDA had increased 5% following restructuring, adding that US wholesale revenues for the Billabong brand increased 9.5% and rose 5.7% for RVCA on a like-for-like basis.
However, it reported that Australian retail sales had declined over Christmas and said that, while its seven-point global turnaround strategy was building momentum, it remained in its early stages.
“A year into our turnaround it’s encouraging to see the group return to profitability for the first time in three years,” said CEO Neil Fiske.
“There remains though significant operational reform to be undertaken.
“Where our effort is being concentrated we are seeing positive signs of brand growth and improved margins… However, as expected in what is a complex global turnaround, there is not yet universal progress across our operations and these results are impacted by changes to our portfolio.”
Help test our new apparel sourcing tool.
Ed Leasure, the head of the US division for Billabong is to retire after nine years with the Australian surfwear company, just months after the company revealed subdued trading in the region. ...
Billabong saw its share price plummet this week after it revealed sales and margins in its new financial year have come under pressure from the weaker dollar and subdued trading in North America. ...
- Digitalisation and data to disrupt supply chains
- 3D CAD comes of age
- EU eyes mandatory due diligence for apparel supply
- Unlocks for the future fashion sourcing landscape
- What TTIP might mean for US, EU textiles & apparel
- Li & Fung forms supply chain partnership with PVH
- Big data to help US firms improve clothing fit
- Levi Strauss and ILO probe Cambodia factory death
- US Q4 in brief – G-III Apparel, Finish Line
- Labour rights risk Bangladesh EU trade benefits?
- Central and East Europe Report Package
- Central America strategic sourcing review - a focus on Guatemala, El Salvador and Honduras
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- Outdoor performance apparel 2016: A broader perspective
- REPORT BUNDLE: Africa-Med, Southeast Asia and Central America strategic sourcing pack