Billabong International is counting on cost savings, fresher stores and new supply chain, ordering and e-commerce systems to boost earnings this year after reversing sliding sales in key brands to deliver its first profit in four years.
Chief executive Neil Fiske says the surf, ski and skate-wear company, which came close to collapse in 2013, is making "good progress" against a seven-point, multi-year turnaround plan, reporting a AUD4.2 million (USD3m) net profit and the first growth in underlying earnings in seven years.
However, Mr Fiske warned of challenges in 2016 as the sharp fall in the Australian dollar pushed up input prices and interest costs on Billabong’s USD204 million term loan, while the benefits from supply chain and distribution changes would be skewed towards the second half.
(Source: The Sydney Morning Herald Online )