Chinese Club To List On Stock Market Pini Zahavi Bails Out Belgium's Mouscron Door Closed On A-League Salary Talks EPL Reveals '14-15 Revenue Distribution BCCI Mulling Performance Incentives UEFA Softens FFP Regulations AFL Players Join Marriage Equality Push New Zealand To Accept Day-Night Tests Scandal May Change AFL's Drug Policy Cricket World Cup Generates $844M
Enter amount in full numerical value, without currency symbol or commas (ex: 3000000).
SBD Global/August 28, 2012/Finance
Billabong Sets Sights On Reversing Downward Sales Trend
Published August 28, 2012
QUICK FIX: In Sydney, Blair Speedy reported that a "quick fix" to cut 15% of the product portfolio and close a further 82 stores this financial year would boost pre-tax earnings by A$10M. The company would also "increase marketing expenditure on its core brands, aimed at returning the company to sales growth and lifting earnings" before interest, tax, depreciation, amortisation and one-off items by 150% over the next four years to A$210M. Brisbane-based Hunter Green Institutional Broker Charlie Green described the strategy as "like something from Macbeth -- full of sound and fury but signifying nothing." He added that the company was "likely to be bought out by TPG before its plans could bear fruit" (THE AUSTRALIAN, 8/28). Also in Sydney, Eli Greenblat wrote that Billabong CEO Launa Inman said she had also identified several ''quick wins'' that included the closure of 82 stores, to take total store shutdowns to 140, and a reshuffling of staff rosters that would generate A$30M in savings by '13. Inman: ''My role is to ensure that Billabong becomes a good company again regardless of whether TPG is in the picture or not. My objective is to ensure that it is business as usual and do what we need to do to transform this business to take it up to the profits we are talking about." (SYDNEY MORNING HERALD, 8/28).