Billabong Trading Update
josh hunter
- May 18 2009
- 248 views
- 8 comments
Billabong announced today on its Investor Relations Web Site that the company expects to report a full-year net profit in the range of $160-$165 million (ASD) for the year ending June 30—down from $176.4 million (ASD) in 2007-08.
According to a release on the site: “A deterioration in trading conditions at a consumer level in the US in late April and early May, together with a reduction in forward orders within the Company’s US wholesale account base and the strengthening of the Australian dollar against the US dollar has led Billabong to review its expectations for the remainder of the 2008-09 financial year.”
“This year by that date, approximately 25 percent of our account base had yet to place an indent order for back-to-school fall, which starts shipping at the end of May,” BIllabong CEO Derek O’Neill told reporters. “This is unprecedented for us.”
The release from Billabong says that the company has reduced overall inventory levels without any significant gross profit margin dilution. In addition to sales being pushed into the company’s 2009-2010 financial year by retailers delaying purchases, Billabong also predicts “the general trend towards lower inventory and lower forward looking orders in the US will lead to product shortages in the 2009-10 financial year and this will have a positive impact on wholesale demand in a tight inventory environment.”
Billabong (BBG.AX) shares are expected to resume trading tomorrow.
Stay Tuned To Transworldbusiness.com for updates as they happen.
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May 19th, 2009 at 6:43 am
i thought this was interesting … “the general trend towards lower inventory and lower forward looking orders in the US will lead to product shortages in the 2009-10 financial year and this will have a positive impact on wholesale demand in a tight inventory environment.” SHops will under order then have to pay higher prices to wholesalers who have the inventory they need later on when they need it?