Business

Billabong posts first annual loss

AILING surf wear company Billabong will close 82 struggling stores after it announced a $275 million net loss on Monday.

The result was the company's first loss since 2001 and highlighted just how far it has plummeted in a short space of time.Billabong shares were trading at $1.31 on Monday, significantly less than the $17 traded just five years ago.

The store closures, combined with the shutting down of 58 under-performing stores in the past financial year, are expected to save the company $6 million before tax in the current financial year.

A Billabong spokesman said the bulk of the store closures would be overseas.

Closing under-performing stores formed part of the strategic capital restructure announced in February.

News of the loss, no doubt, will increase pressure on Billabong's major shareholder, board member and founder Gordon Merchant.

Mr Merchant is perhaps best known in the Clarence Valley for his multi-million-dollar home at Angourie built across three blocks.

In February, he used his 15% stake in the company to block an $850-million takeover bid by TPG Capital.

The United States private equity firm remains interested in Billabong and currently is examining the books.

The Billabong spokesman would not comment on TPG interest's interest in a takeover other than to say "due diligence was under way".

Meanwhile, Billabong used Monday's announcement to reveal details of a four-year strategy designed to reverse the company's fortunes.

Billabong CEO Launa Inman said in a statement the strategy would target "cost savings and revenue growth".

The "transformation strategy" will be aimed at simplifying the business, globalising its supply chain and leveraging Billabong's brands.

The strength of the Australian dollar added to the company's not insignificant challenges.

Despite its struggling share price and significant 2011-12 loss, Billabong CEO Launa Inman said she was confident the company remained profitable.

"As previously flagged to the market, the group's results have been adversely impacted by various significant and exceptional items," Ms Inman said.

Topics:  asx billabong profits stock market



Aussie titles on home turf

HOME BOY: Matt Hurworth of   Cabarita Boardriders will compete in this weekend's Australian Surf Festival on his home break.

Top surfing showdown at Cabarita

Fan's dream becomes reality with secret Potty gig

RIGHT TO THE FRONT DOOR: Singer/songwriter Mark Wilkinson will play a gig at a Pottsville fan's home in August.

Singer-songwriter Mark Wilkinson to play secret Pottsville gig

NCEIA Dolphin Awards looking for the best of 2017

NEVER TOO LATE: Ivan Perger, 66, received his first NCEIA Dolphin Award in the folk category in 2014.

Entries to the North Coast music awards are now open

Local Partners

The Block's family home rescue mission

RENO show's new concept – relocating and restoring crumbling heritage homes – proves its biggest challenge to date.

Angelina Jolie 4.0: Is anyone buying this?

Angelina Jolie, master media manipulator, is back.

Love The Bachelor and a feminist? Sorry, you can't be both

These 22 women trying to win Matty's heart... but at what cost? (Pic: Channel 10)

Tans will be sprayed. Roses will be distributed. Tears will be shed.

New indie folk fest launching social awareness

The Heart Collectors, Reuben Loire, Kymrie Henge, Mobius Barnaby and Tristan DaFoe

New folk music and wellness festival for Tyalgum

George RR Martin: Sixth book won't be out this year

Emilia Clarke returns as Daenerys Targaryen in the seventh season of Game of Thrones, which premieres only on Foxtel on July 17.

“I am still working on it, I am still months away..."

Mum spotted on Google Earth 18 months after death

A woman has spotted her mother on Google Earth - she died in 2015

What's on the big screen this week

A scene from the movie War for the Planet of the Apes.

AN ACTION franchise comes to its epic conclusion.

Hearty food for cold nights

Boneless lamb shoulder roast with crushed kipflers.

RECIPES: Two tasty lamb dishes to try this winter

How one man made more than $20m in a land deal

Varsity Lakes

Sale, with GST added, shows as a $26.4 million transaction

Oasis in Oxley Cove estate

14 Midship Court, Banora Point

Check out this week's feature property.

Tenant: Let me rent, I'll fix your property and pay for it

Noosaville tenant Tony Conyers thought his tenancy was guaranteed until 2035, so he spent his own money on the property. Now he's been told he may not be able to stay for even one more year.

Renter spent $30k on maintaining, improving property over 17 years