Billabong International Limited (ASX:BBG) shares slumped more than 34 per cent in mid-morning trade after the surfwear company said its planning a strategic review of its operations.
A slowdown in Christmas sales has also prompted the company to review its capital structure.
It’s expecting earnings before interest, tax, depreciation and amortisation for the six months to December 31 to be $70 million to $75 million, down from the previous corresponding period's $94.6 million.
Billabong says sales data “reflects the European sovereign debt issues and the ensuing fears of global recession which are impacting consumer confidence and spending patterns significantly".
Billabong International Limited (ASX:BBG) reported a net profit of $118 million for the year to June 30.
