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. ...
- Improved supplier capabilities benefit Next
- Next H1: What the analysts say
- China and Vietnam lead US apparel imports in July
- THE FLANARANT: Understand win-win or lose out
- US apparel retailers' August 2014 sales roundup
- Hanesbrands axes Costa Rican jobs in Vietnam move
- Brandix selects first "game-changing" innovations
- Apparel fuels global manufacturing downturn
- VF taps Nike exec to lead innovation centres
- Bagir to invest in Ethiopia as H1 loss deepens
- Wool in the 21st Century: new prospects for a familiar fibre
- Global market review of denim and jeanswear – forecasts to 2020
- Apparel Market in China to 2018 - Market Size, Trends, and Forecasts
- Global Database of the Top 1000 Apparel Producers - Company Names, Financial Performance, Key Executives, and Contact Details
- Global Database of the Top 1000 Cut and Sew Apparel Producers - Company Names, Financial Performance, Key Executives, and Contact Details