Billabong boss confident despite $276m loss
28/08/2012
The result was dragged down by one-off costs of $537.5 million, including $343 million in writedowns, $73.7 million lost as a result of selling inventory below cost and $58 million in lease termination payments related to the closure of 58 stores.
Despite this, Billabong chief executive Launa Inman, who was brought into turn the company around in May, is confident, pointing out that without one-off costs net profit would have been $33.5 million. "At an underlying trading level, the group remains profitable," she said.
The company has laid out a four-year plan to return the business to positive sales by simplifying the business, closing ailing stores and boosting online retail. It has fended off advances by private equity firm TPG Capital, which most recently offered $1.45 per share, valuing Billabong at $695 million.
"The group is well on track in implementing the initiatives outlined in the strategic capital structure review and will continue to implement a number of new strategic initiatives as part of Billabong's transformation strategy," she said. "These initiatives will target both cost savings and revenue growth."
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