A year has passed since Billabong International Ltd. announced its turnaround strategy, but results for the year ended June 30 show worsening business conditions.
Billabong International, the parent of Irvine-based Billabong USA and several local action-sports apparel and accessories companies, posted a net loss for the year of $776.04 million. That’s widened from a loss of $248.84 million in the year-ago period.
Adjusted companywide sales fell 5.9% in constant currency to $1.21 billion.
Investors sent the company's shares down about 11% on Tuesday in Australia where it’s traded on the Australian Securities Exchange to a market value of $224.88 million
Billabong also operates a retail business, which had 562 stores at the end of its fiscal year.
The company’s Americas division, which is run from Irvine, saw adjusted sales fall 5.7% for the year to $574.97 million.
Earnings before interest, taxes, depreciation and amortization for the Americas region rose less than 1% to $34.31 million.
Billabong hopes to turn the page on its troubled business with new long-term financing struck with a group led by Altamont Capital, a deal the company said could be wrapped up within a few weeks.
The Billabong board is also considering an alternative financing proposal from U.S. hedge funds Centerbridge Partners LP and Oaktree Capital Management LP.
The period of uncertainty in the company’s direction and potential sale talks has dragged on for the better part of a year now with several executives leaving, including this month's departure of Americas President Paul Naude in Irvine along with Chief Executive Launa Inman in Australia.
Billabong reportedly lost Rob McCarty, Billabong men’s senior design director, along with Billabong Vice President of Merchandising and Design Terry Strumpf more recently. Strumpf also served as president of the Xcel brand.
The company could not be reached for comment on the latest executive departures.