After years of struggling in the red, Billabong is back in the black
Surfersvillage Global Surf News, 26 February, 2015 - Gold Coast, Australia -The surf industry got a bit of good news today, as Billabong released their half-year earnings report. After years of ups and downs, almost three years of operating at a loss, and just 12-months into their "global seven-part turnaround strategy," the company is making money again.
In a press release Billabong's CEO Neil Fiske was quoted saying "it's encouraging to see [Billabong] return to profitability."
The report shows Billabong International's Net Profit after tax, for the last half of 2014, at $25.7 million dollars (compared to the prior year's staggering loss of $126.3 million during that same period).
In the US, wholesale sales were up 9.5% at Billabong, and 5.7% at RVCA. Much of the company's efforts have been on the wholesale front domestically, though the company's flagship skate brand, Element, saw remarkable "double-digit" growth in Europe.
Though even the early stages of their turnaround effort have been positive, the company isn't without its issues, such as Australian retail sales dropping during the Christmas trading period. The press release went on to clarify: "However, as expected in what is a complex global turnaround, there is not yet universal progress across our operations…"
That said, the report is still a ray of sunshine in an otherwise financialy cloudy industry, as one of the biggest movers in the game seems to be scratching back to black, after a rough several years in the red.