Surfwear retailer Billabong has reduced its losses by 73% to $233.7 million in the year to June 30, pushing revenues up 1.6% to $1.2 billion.
CEO Neil Fiske said, since implementing its turnaround strategy in December last year, the business has stabilised, restructured and refocused.
“The company has a far stronger balance sheet,” he said. “We have put in place a new global organisational structure and executive team. We have begun to simplify the portfolio. We have taken, and continue to take, significant costs out of the business.”
Fiske said while the turnaround is gaining traction it is still “the early stages of a complex, difficult turnaround… but I am pleased with the early indicators of success.”
As part of the restructuring plan the retailer will sell its 51% stake in e-commerce business SurfStitch and its American brand Swell, from which it expects to receive more than $35 million.
Billabong is forecasting FY15 trading to be similar to that experienced in FY14.
“As we move through FY15 the company expects to see the impact of the turnaround strategy in the results but it is not possible at this time to quantify the extent of such impact.”
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