Billabong, a surf company/clothing retailer, has decided to sell the Tigerlily business to Crescent Capital Partners for Au $ 60 million. Established in 2000, Tigerlily is a leader in premium swimwear and beachwear and its revenue amounted to Au $ 30 million for the twelve-month period ended December 31, 2016.
“With the sale of Tigerlily, we’re simplifying our portfolio and paying down debt. We’re seeing a strong profit lift in the Americas and our key initiatives are set to deliver substantial margin improvements,” said Neil Fiske, Chief Executive Officer, Billabong.
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Following this, the company also released its financial results for the first half of the fiscal 2017. Total Group sales in this period stood at Au $ 508 million, down 5.8 per cent on a comparable constant currency basis.
Sales in American region declined 9.5 per cent on constant currency basis to Au $ 192.1 million from last year’s Au $ 219.9 million. Gross profit in this region also decreased 6.3 per cent to Au $ 92.5 million. In Asia Pacific, sales were Au $ 231.3 million with 6.7 per cent decline. In addition, gross profit dived 9 per cent to Au $ 126.9 million. European region also faced a loss of 5.9 per cent in sales to Au $ 84.9 million and 8.5 per cent in gross profit to Au $ 43 million.