The Australian parent of Irvine clothing maker Billabong USA reported lower sales and profits for the six months through December citing weak North American sales and the effect of a stronger Australian dollar.
Billabong International Ltd., which makes clothes inspired by surfing and skateboarding, said its six-month profit fell 15% from a year earlier to $60.6 million, after factoring in a stronger Australian dollar.
Analysts in Australia had been looking for a profit of $65 million.
Revenue fell 11% to $629 million.
Sales in the Americas, led by the U.S., were down 6% to $276 million for the period.
Earnings before interest, taxes, depreciation and amortization in the Americas were $29 million, down 4%.
U.S. sales picked up in November and December, Billabong International Chief Executive Derek O’Neill told The Australian newspaper.
“There are a lot of other companies in our sector that wouldn’t have minded a drop of only 6% in America,” he said.
Billabong said it saw improving sales at its own stores but saw slower sales of its clothes through other retailers.
Sales to Anaheim-based Pacific Sunwear of California Inc., the largest mall retailer of surf-inspired clothes, were down by 50% in the period, according to the company.
Billabong USA is the second-largest surfwear company here after Huntington Beach-based Quiksilver Inc.
The company makes clothes under several brands and also runs stores under the Beach Works, Billabong and Honolua Surf Co. names.
In November, Billabong acquried San Clemente’s Swell.com, an online clothes seller.
