The swimwear giant has announced that taxes and a tough retail market have taken their toll on Billabong during their multi year comeback plan.
The Gold Coast Bulletin has announced troubling news concerning swimwear giant Billabong. The company has reported a $23.7 million dollar loss this year, following a $4.2 million dollar profit reported a year earlier.
The swimwear brand has faced their fair share of turbulence over the last few years, and is currently in the middle of a multi year comeback plan. Billabong reported that more than two – thirds of its decline related to higher tax costs, and that the majority of challenges that affected the company came from external forces. Billabong have come through a year of extraordinary market disruption and dislocation, in many ways stronger, leaner and more focused yet clearly impacted a number of factors outside of Billabongs control.
Billabong have tried to simplify the business and narrow the focus on building a global platform. The progress of this nature is not necessarily going to be perfect and Billabong expected there will be ups and downs along the way. There are three major external shocks that have affected Billabong, a tough retail market, a decline in longboard sales – hence the sale of Sector 9 skateboard company and most importantly, currency. Both the Australian dollar and the euro have seen decline this year. Currency fluctuations have taken their toll on the swimwear company this year, and hit the company’s costs by $17 million dollars in it’s Asia – Pacific and European markets.
The Billabong company has not ruled out shedding under performing companies, if need be. Revenue from Billabong’s three biggest brands – RVCA, Billabong and Element are up 5.3 percent.
Billabong has expressed that its 2017 results will be influenced by Christmas trading in the Asia – Pacific and North American market.