Billabong sales in the US dropped by 6 percent but CEO Derek O’Neill says that’s actually not that bad considering the economy and currency fluctuations, according to a story in The Australian.
“There are a lot of other companies in our sector which wouldn’t have minded a drop of only 6 per cent in America,” Billabong chief Derek O’Neill said yesterday. “It got better in November and December, but in the early months — July and August — conditions were very tough in the US.”
But none of this has caused Billabong to cut back on the 5 percent growth they are estimating for the year.
Mr O’Neill said the company did not expect a strong sales burst but it was counting on increased margins for it to meet its profit guidance after cost-cutting in the second half of last year, particularly in the US.
[Link: The Australian and BusinessWeek]
