Billabong has announced that profits in the quarter ending December 31, 2010 will be 8 – 13 percent down over last year according to a story on SmartCompany.com.au.
The company now expects net profit for the full financial year will be flat, after earlier predicting profit would increase 2-8%. . . Billabong shares have fallen 9% in initial trade to $8.09, as investors reacted angrily to the shock downgrade. . . Finally, the company said it has had problems getting Billabong brands into the host of retail outlets it has purchased in the last few months, including the Surf Dive ‘n’ Ski and Jetty Surf chains, the Rush Surf chain in Queensland and the West 49 chain in Canada. . . It appears Billabong is having troubling selling out the stock in these stores, which it needs to do before it can start fitting out these stores with goods from the Billabong family of brands.
Seems like retail is always the weak link in the surf fashion business. (Click here for the entire call transcript)
[Link: SmartCompany.com.au and The Australian]
