Billabong has a long road ahead of them as it plans to turn the company around after reporting a massive net loss of $859.5 million for the 2013 financial year.
The nose dive has been driven by sinking global sales across its key regions – Australasia, Europe and Americas . Global sales revenue was down 13.5 per cent to $1.34 billion in reported terms. This was made up revenue sliding 5.7 per cent to $636.7 million in of Amercians, followed by Europe which was hit by challenging macroeconomic environment resulting in sales dropping 10.4 per cent to $232.1 million and Australia where sales were down 6.6 per cent to $471.8 million.
However, Billabong chairman Ian Pollard said a number of strategies were in place to help rebuild the company. These included selling underperforming brands such as Nixon and Canadian retail chain West 49, and closing 158 under performing retail stores.
It has also reduced its suppliers by 75 per cent to drive cost savings, efficiency and improve quality control.
Billabong is also in the process of reducing its European headcount by approximately 15 per cent and restructuring the Australasia wholesale operations and moving to a distributor model in Asia.
Pollard reassured there’s a strong future ahead following the most challenging period in the company’s history.
“We are nearing the end of a long process that has caused distraction, impacted on staff morale and has been very costly,’’ he said.
"The company looks forward to refocusing, reinvigorating its brands and rebuilding the business on a solid, long-term financial footing.’’