We’ve kind of fallen off our coverage of Billabong because they (along with Quiksilver) no longer seem like a brand in our category. Sure they make clothing for the ocean, but past that they’re really just a more authentic version of Hollister, mostly focused on mall customers and bottom lines. That said, it is interesting that Billabong could be facing a class action lawsuit from the Australian firm of Slater & Gordon for allegedly misleading and deceiving investors with earning guidance in 2012, according to a story on Inside Council.
“Our clients allege that Billabong’s internal initiatives had no viable chance of substantially increasing profit margins, contrary to what the company had conditioned investors for. They further allege that, had the market been informed of the true dependencies underpinning the earnings forecast, it would have disregarded the guidance as unrealistic, and this would have been reflected in Billabong’s share price.”
Billabong will apparently defend itself. Which would probably be a good idea.
[Link: Inside Counsel]
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