Home / Knowledge / News / Apparel/Garments / Apparel marketer Billabong slips into H1FY16 loss
Apparel marketer Billabong slips into H1FY16 loss
01
Mar '16
Aussie apparel marketer Billabong slipped in to a loss of Au $1.6 million for the first six months of fiscal 2016 ended December 31, 2015.

“This compares to a net profit of $25.7 million for the corresponding period of the previous fiscal,” a Billabong press release said.

“The first six months of fiscal 2015 benefited from $13.5 million of significant items including gains on asset sales, compared with an immaterial net impact this period,” the company explained.

For continuing businesses, EBITDA excluding significant items was down to $37.2 million compared to $42.8 million for the fiscal ago period.

However, for the reporting period, total group sales were $561.9 million, up 7.6 per cent as against the same period of prior fiscal, but were again down 0.8 per cent on a constant currency basis.

According to Billabong, the overall result was impacted by the Americas where EBITDA declined by $6.9 million for the period.

“Gross margins too were down due to pressures from excess inventory which followed the West Coast US port strike early in calendar 2015,” the company observed.

“Collectively the rest of the world EBITDA was ahead over the first half of prior fiscal despite increased cost of goods from a relatively higher US dollar,” it noted.

Billabong further added that global platforms to support brands have begun to be rolled out with targeted benefits of $30 million in annualised savings at maturity.

“This is a brand led turnaround and our big three brands, where we placed our focus, grew globally,” said Billabong CEO Neil Fiske.

“Europe continues to gain momentum and the Asia Pacific region has delivered a solid performance given currency pressures,” Fiske too added.

“The result has been impacted by conditions in the Americas, as highlighted in our November update, including sector weakness in retail and short-term margin pressures associated with clearing excess inventory,” he observed. (AR)

Fibre2fashion News Desk - India

Must ReadView All

Apparel/Garments | On 5th Dec 2016

EC proposes new tax rules to support e-commerce in EU

The European Commission (EC) has unveiled a series of measures to...

Apparel/Garments | On 5th Dec 2016

Traders to intensify adoption of digital payments

Adoption of digital payments in their existing business format would...

Textiles | On 5th Dec 2016

US textile & apparel exports down 6.44% in Jan-Sept ’16

The exports of textile and apparel from United States were down 6.44...

Interviews View All

Riddhika Shah
SS Homme

'Worsted wool is the ideal fabric for menswear'

Yash Agarwal
Hitansh Online

Every market region has its own culture and trends

Milind Khandwe
Hindoostan Innovation Centre

‘Modern technical textile is an indispensable tool for science and...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer Prathyusha Garimella is known for blending...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
December 2016

December 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


Advanced Search