Billabong achieves first profit in years, despite lower turnover | RetailDetail

Billabong achieves first profit in years, despite lower turnover

Billabong achieves first profit in years, despite lower turnover

Australian surfing brand Billabong has managed a 25.7 million Australian dollar (18 million euro) net profit in the first half of its fiscal year 2014/15 - the first profit in three years.

Billabong rises from the dead

In the past few years, Billabong faced more than a few problems: having lost touch with its customers, turnover dwindled and losses grew. Several board changes and failed acquisitions did not help the company one bit.

 

A thorough restructuring program has seemingly reignited Billabong, turning the 126.3 million Australian dollar (90 million euro) loss in the first half of its fiscal year 2013/4 into a profit this time around. A refinancing operation has helped lower its net 175 million dollar (120 million euro) debt at the end of 2013 to 56.7 million dollars at the end of 2014 (40 million euro).

 

Turnover still dropped

CEO Neil Fiske admits the company still has a lot to do commercially, as the new profit was achieved mainly because of lower costs. Turnover still dropped from 667 million dollars to 537.5 million dollars (465 to 375 million dollars) in the first half of the year, which means Billabong will have to increase its commercial endeavours.

 

One of the changes the company intends to tackle, is its online experience: "We have not invested enough over the past few years" CEO Fiske said about its online department. Billabong does have full control over its online platform now, which "will allow us to fully focus on our omnichannel strategy, starting with Australia".

 

Six of its brands sold through Australian multibrand stores will now be bundled into one brand, hopefully improving its commercial viability.

Questions or comments? Please feel free to contact the editors


Walmart and Microsoft team up to beat Amazon

18/07/2018

Two major American companies join forces to try to beat the omnipresent threat of Amazon: Walmart (Amazon's biggest competitor in retail) and Microsoft (Amazon's main rival in cloud services) have signed a strategic partnership for the next five years.

Sales of PCs grows for the first time in six years

13/07/2018

For the first time in six years computer sales showed growth again: in the second quarter of 2018 they increased by 1.4%. According to research firms Gartner and IDC, the sales increase is mainly due to growth in business markets.

Retailhub Inspiration Tour: the customer journey becomes very different

09/07/2018

Thanks to Retailhub by RetailDetail, Antwerp has one more unique retail hot spot. Professionals can experience the future of retail in the Benelux' only retail inspiration platform, with 1250 sqm of innovative technology and huge trends.

Breakthrough in Karstadt-Kaufhof merger

05/07/2018

Canadian Hudson’s Bay and Austrian Sigma Holding have not reached a preliminary agreement about the merger of their respective department store chains Kaufhof and Karstadt: the Canadian company says it has only signed a letter of intent.

Alibaba CEO and Belgian PM discuss investment in Liège

04/07/2018

Alibaba founder Jack Ma has discussed a possible investment in Liège, Belgium with the country's prime minister Charles Michel. Afterwards no decisive statements were made by either party.

Toys "R" Us closes American stores amidst reboot hopes

02/07/2018

Final curtains for Toys "R" Us in the United States: all the stores have closed and 30,000 employees are laid off. Against all odds, some however still hope for a second life for the troubled chain.