SYDNEY: Embattled Australian surfwear firm Billabong posted a Aus$233.7 million (US$218.2 million) net annual loss Thursday, an improvement from the previous year as it declared that a "turnaround is gaining traction".
The global retailer said revenue rose 1.6 percent to Aus$1.13 billion in the year to June 30, although underlying earnings -- excluding discontinued businesses and significant items such as redundancy costs -- fell 26.2 percent to Aus$52.5 million.
Billabong, which had posted a Aus$859.5 million net loss in the 2013 financial year, has been the subject of multiple failed takeover bids in recent years.
The firm appointed a new chief executive, Neil Fiske, in September and accepted a refinancing deal worth more than US$500 million from US investment firms Centerbridge Partners and Oaktree Capital Management.
Fiske said management had "significantly stabilised, restructured and refocused the business".
"The turnaround is gaining traction. As said at the half year, we are at the early stages of a complex, difficult turnaround," Fiske added.
"The progress we have announced today will take time to fully flow through the business but I am pleased with the early indicators of success."
Fiske said Billabong had seen growth in the Asia-Pacific region, with sales improving by 1.1 percent, while operations in Europe were stabilising.
The Americas recorded the weakest results among the regions, with a 9.9 percent fall for the year.
Billabong sold several assets during the year as part of its restructure, including the Dakine brand in July 2013 for Aus$70 million and its Canadian West 49 chain in February for Can$3 million (US$2.8 million).
Last Thursday, it announced it would sell its online store Swell, along with its 51 percent share in web retailer SurfStitch, to a consortium of investors for more than Aus$35 million.
Comments
Comments are closed.