Billabong is tanking.
Shares in the surfwear group fell as the company warned of deteriorating business conditions and the impact of a lower Australian dollar.
A short time ago, the shares were at $0.54, down 22%.
Company chair Ian Pollard told the company’s annual general meeting the company was two years into its turnaround.
“Turnarounds are hard and seldom linear,” he says. “The changes we are making require an intense focus if we are to successfully execute on our turnaround.”
In August, Billabong reported its first full year profit since 2011 after restructuring, getting out of under-performing stores, consolidating multi-brand banners and investing in new and refurbished brand stores.
However, CEO NEil Fiske told the AGM business conditions have deteriorated.
“We are confronting the pressures caused by a much stronger US dollar compared to the Australian Dollar and Euro,” he says.
“This FX effect impacts our product costs and margins in the Asia-Pacific and Europe, as well as the size and cost of our debt.
“In the Americas, our most important region in size and opportunity, we are seeing weak trading conditions among the large action sports chains and tourist related retail, a high level of promotional activity, and some softness in the core specialty market.”
Business Insider Emails & Alerts
Site highlights each day to your inbox.