Billabong posts first profit since 2011
28/08/2015
Profit after tax for the year to the end of June was $4.2 million, compared with a $233.7 million loss for the corresponding period last year.
Overall retail sales were down slightly on the back of store closures, with a 3.7% decline in brick and mortar comparable sales offset by a 35% growth in ecommerce revenue.
Billabong CEO Neil Fiske. “Growth has returned in the key US market and Europe is again profitable.
“Challenges remain but this result confirms our confidence in the resilience of our brands and provides the conviction to see through the complex changes we’re undertaking globally to deliver sustained, long-term profitable growth.”
The turnaround plan includes “significantly shortened order-to-delivery time” and “reducing cycle times and costs while improving product quality” which suggest changes at, or of, suppliers.
Mr Fiske added: “To date we have identified $30 million in potential annual profit improvement from our global sourcing and logistics initiatives. We will begin to see benefits in FY16, however the lead times in the business mean the benefits will take several years to be fully realised.”
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