Surfwear retailer Billabong posted a full year loss of $23 million, compared to a profit of $4.2 million in 2015, despite a lift in revenue.
A short time ago, its shares were down 12% to $1.38.
The result was on a 4.5% rise in revenue to $1.10 billion. Its big three brands — Billabong, Element and RVCA — all grew sales.
The company says more than two thirds of the decline in profit is related to tax expenses. The tax expense in 2016 was $7.8 million compared to a $12.2 million tax credit in 2015.
“Against a backdrop of global uncertainty and industry change, we continue to focus on the levers within our control, including inventories, initiatives to lift margins, cost of doing business (CODB) and quality distribution,” says CEO Neil Fiske.
“Inventories are back in line, we’ve become more efficient and we are building the global platforms that will help our brands grow and expand operating margins over time.”
“Our strategy is to create strong global brands with tight distribution and an Omni platform that integrates wholesale, retail stores, ecommerce and social media. That’s the way our consumer wants to shop. In an industry in transition, we believe our strategy is right and positions us well.”