Soft sales over the Thanksgiving holiday capped off a dismal month of trade for Billabong, which admitted repeat business in November was weaker than anticipated. While forward orders had remained stable in its wholesale arm, some American retailers had requested shipments to be delayed.
"In the face of deep discounting within sections of the industry, Billabong, wherever possible, is retaining its regular pricing strategy," the company noted in a market update. "This has impacted sales but is essential to the maintenance of brand equity."
Billabong expected poor conditions to continue well into the financial year and said it would continue cost cutting initiatives and "closely monitor" and review small and large accounts.