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



Cats prowl for new Starlettes with auditions

Alessandra Salisbury (middle right) with the current Starlettes cast for their adaptation of Cats.

"I use different music and choreography in an adaptation of Cats”

Tigers look to rebound against 'Pies on the road

EARNING HIS STRIPES: Glen Phelps impresses with three goals on debut against Byron.

"I'm really impressed with the effort from our guys”

Strassman takes aim at the modern world

PUPPET MASTER: David Strassman returns with brand new show, iTED E in May.

"America elected an idiot president because of social media”

Local Partners

Sam Thaiday stars in Broncos’ carpool karaoke

SAM Thaiday has stunned with his karaoke rendition of Celine Dion.

What's on the small screen this week

My Kitchen Rule's mother and daughter contestants Valerie and Courtney.

MY KITCHEN Rules grand finalists face off and Love Child returns.

Cats prowl for new Starlettes with auditions

Alessandra Salisbury (middle right) with the current Starlettes cast for their adaptation of Cats.

"I use different music and choreography in an adaptation of Cats”

Anthony LaPaglia steps out with new fiancee

Anthony LaPaglia.

Actor Anthony LaPaglia engaged to much younger girlfiend

Ronan Keating a dad for fourth time

Ronan Keating and Storm Keating.

Bouncing baby boy for Boyzone star

Affordable rentals out of reach for North Coast residents

Rental affordability hits new crisis levels

Falling rents could spell doom for housing prices

What if I told you housing in Australia was getting cheaper?

Grand historic farming estate in Mullumbimby

37 Myocum Rd, Mullumbimby

Check out this week's feature property.

Couple gets rich renovating run-down city homes

RENO RADICALS: Baden and Nelson Marino-Hall have turned three Toowoomba homes around for profit, saying the Garden City was a haven for renovators like themselves.

The couple has already turned around three homes

Townhouse pitch raises questions over 'high density'

BIG PLANS: Residents have a chance to offer their opinion on plans to build 42 townhouses at Raceview.

Developer plans 42 townhouses for Ipswich suburb

Ready to SELL your property?

Post Your Ad Here!