Billabong International Ltd
(ASX:BBG) has reported a 4.5 per cent drop in annual net profit to $146 million for the year to 30 June.
The surfwear retailer says it was adversely impacted by the continued appreciation of the Aussie dollar, noting the result was 8.1 per cent higher in constant currency terms.
Revenue was down 11.2 per cent to $1.5 billion, although flat in constant currency terms, reflecting the strength of the Aussie dollar on Billabong’s US earnings.
Looking ahead, Billabong says it expects net profit in constant currency terms to grow between two and eight per cent, as an improved American outlook and continued strength in Europe offsets a challenging Australian market.
The company has also advised that it has reached a conditional agreement to acquire the 36-door Rush Surf retail chain in Australia, with the purchase expected to be complete in October.
Billabong reported a profit of $153 million for the year to 30 June 2009.
