• Billabong prepares for tough trading in the US market.
    Billabong prepares for tough trading in the US market.
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NATIONAL: Deteriorating conditions in the US market have forced surfwear giant Billabong to revise its earnings guidance for fiscal 2009. The company forecast earnings per share growth from 12 to 16 per cent in October, but has now downgraded the figure to 6 to 10 per cent.

Soft sales over the Thanksgiving holiday capped off a dismal month of trade for Billabong, which admitted repeat business in November was weaker than anticipated. While forward orders had remained stable in its wholesale arm, some American retailers had requested shipments to be delayed.

"In the face of deep discounting within sections of the industry, Billabong, wherever possible, is retaining its regular pricing strategy," the company noted in a market update. "This has impacted sales but is essential to the maintenance of brand equity."

Billabong expected poor conditions to continue well into the financial year and said it would continue cost cutting initiatives and "closely monitor" and review small and large accounts.

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