AUSTRALIA: Loss-making Billabong unveils new strategy
- FY net loss of A$275.6m versus A$119m profit
- Revenue down 7.9% to A$1.55bn
- CEO unveils transformation strategy
Surfwear business Billabong has unveiled a four-year transformation strategy after recording a full-year loss of A$275.6m in the 12 months to 30 June.
Revenues were down 7.9% at the Australian business, currently the target of a A$694m takeover bid from US private equity firm TPG Capital.
Billabong’s profits were hit by more than A$330m of costs, without which the company would have made a profit of A$33.5m, boosted by online sales growth of about 50%.
“At an underlying trading level, the group remains profitable,” said newly appointed CEO Launa Inman.
“The group is well on track in implementing the initiatives outlined in the previously announced Strategic Capital Structure Review and will continue to implement a number of new strategic initiatives announced today as part of Billabong’s Transformation Strategy.”
The four-year strategy aims to return Billabong to positive sales growth and to deliver EBITDA more than 2.5 times greater than that recorded in fiscal 2012.
The main strands of the strategy include simplifying the business, leveraging Billabong and other key brands, realising the strategic potential of retail, expanding e-commerce and integrating the supply chain.
TPG has submitted a A$1.45 a share offer for Billabong and is currently conducting due diligence on the company, but Billabong has said the offer does not reflect the “fundamental value” of the business.
The most read stories on just-style this week include a look at how sourcing is going to be in 2013, a spotlight on why buyer interest in Billabong has not yet turned into a deal, and M&S extending it...
Australian surfwear brand Billabong has received a rival bid for the brand from VF Corp and private equity firm Altamont Capital Partners, which matches an offer from US boss Paul Naude and Sycamore P...
Australian surfwear brand Billabong has appointed Peter Myers as group chief financial officer, replacing Craig White who resigned last month....
Australian surfwear brand Billabong has opened its books to a consortium comprising the company's former head of its Americas business. ...
- Indian apparel exporters discuss policy changes
- Clothing seen as central focus for new Tesco CEO
- INTERVIEW: David Nieper pushes Made in UK momentum
- MYANMAR SNAPSHOT: Textile and apparel industry
- Is China's dream becoming a nightmare scenario?
- Crystal Group improves worker communication
- TIMELINE: Charney ousting from American Apparel
- European MEPs call for more TTIP transparency
- ILO backs Burma project to improve work practices
- UN rights expert urges further Cambodia reforms
- Global market review of denim and jeanswear – forecasts to 2020
- American Eagle Outfitters, Inc. : Reacting to a need for change
- Management briefing: Sourcing shifts: Changes and challenges
- Ethiopia – the emerging textile and clothing industry
- Plunkett's Apparel & Textiles Industry Almanac 2014: Apparel & Textiles Industry Market Research, Statistics, Trends & Leading Companies