Acquisitions by Irvine-based clothing maker and retailer Billabong USA helped drive higher revenue for its Australian parent for the six months through December.
Billabong USA, part of Billabong International Ltd., saw sales of $408 million for the period, up 38% from a year earlier—excluding the impact of a strong Australian dollar, which now is on par with the U.S. dollar.
The gain largely was driven by the late 2010 buy of Canadian retailer West 49, which runs stores selling clothes inspired by skateboarding and snowboarding.
Billabong USA also acquired Costa Mesa-based Rvca Clothing last year.
Besides acquisitions, Billabong USA was helped by “good improvement” in sales at company stores in the U.S.
Billabong USA runs about 230 North American stores under its own name as well as West 49, Becker Surf & Sport, Beach Works and Honolua Surf Co.
Profits at Billabong USA, which oversees operations in North and South America for its parent company, slipped with the West 49 acquisition and others, as well as on higher costs.
Earnings before interest, taxes, depreciation and amortization fell 6% to $29 million for the six months through December, excluding the impact of currency.
Overall, Billabong USA drove results for its parent. The unit made up 48% of Billabong International’s $837 million in sales for the six months.
Billabong International’s sales in Europe rose 14% in constant currency terms to $157.2 million for the period. Operating profits there were up 8% to $31 million.
Revenue in Australia and the rest of Asia were up 13% to $269 million, while profit in the region was down 23% to $52 million on acquisitions and a weak retail market in Australia.
The results come after Billabong International warned investors and analysts of lower than expected results in December.
For the 12 months through June, the company said it expects sales of $1.7 billion, up about 25% in constant currency terms.
Recent acquisitions are seen spurring the gain.
Profits are seen coming in flat from a year earlier.
