Billabong Says Slowing Demand In U.S. Caused First-Half Forecast Cut
josh hunter
- December 04 2008
- 358 views
- 1 comment
According to a report from Bloomberg, Billabong International Ltd forecast its first-half earnings-per-share to fall due to slowing demand in the weakened U.S. market. The report says that the company cut its forecast for annual EPS growth between 6 and 10 percent in the year ending June, down from an October prediction for a rise of as much as 16 percent.
Here’s a link to Billabong’s Dec. 4 Trading Update and Conference Call Transcript
From Bloomberg: U.S. customers, Billabong’s biggest market, are deferring deliveries of new clothing to cope with the slowdown while slumps in the value of the Canadian dollar and South African rand against the U.S. currency is cutting the value of sales. Chief Executive Officer Derek O’Neill is trying to reduce his own inventory levels to minimize the impact.
»
December 5th, 2008 at 2:05 pm
Shares in Billabong have plummeted more than 21% since chief executive, Derek O?Neill, cut his profit outlook yesterday and said the worldwide retail gloom was the worst he had ever seen. . . .Stocks fell 18% to $8.20 yesterday, the largest decline since it listed eight years ago. Billabong?s share price was down more than 3% to $7.94 at 12.50pm today. …from Sydney Morning Herald