Shares in trendy surf wear label Billabong International fell sharply on Thursday after its CEO Matthew Perrin sold 60 per cent of his stake for $A66.4 million.

The Queensland-based company saw its stock fall around 10 per cent to A$8 after Perrin sold eight million shares in the popular label.

The Courier Mail reported that Perrin's decision to sell is not a sign he plans to leave or that Billabong is in imminent trouble.