Billabong posted a loss of $16.1 million for the six months to December but the surfwear retailer says it expects a lift in earnings in the second half.
Sales were down 5.8% to $508.3 million.
The company says restructuring costs, including redundancies, and significant items were $9.5 million higher in this half than the previous half.
The half year result follows the 2016 full year loss of $23 million, compared to a profit of $4.2 million in 2015.
Billabong this week announced the sale of its Tigerlily brand for $60 million to Crescent Capital Partners. The cash will be used to pay down debt, reducing interest costs.
CEO Neil Fiske says the results are consistent with the update to shareholders at the AGM in November.
Then the company said the first half would be substantially down but that would be followed a lift in the second half.
“We’re simplifying our portfolio and paying down debt,” says Fiske.
“We’re seeing a strong profit lift in the Americas and our key initiatives are set to deliver substantial margin improvements.”
He says the company is still on track with its earnings guidance, minus the contribution from the now sold Tigerlily.
The company didn’t pay a dividend.
The guidance of EBITDA (earnings before interest, tax, depreciation and amortisation) of between $60 million and $65 million is now $52 million to $57 million excluding significant items.
The numbers for the first half:
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.