At its annual meeting, Billabong officials noted that Q1 wholesale sales for the Billabong brand in the U.S. grew 14 percent, representing a rebound for the brand in the region.
In the fourth quarter ended June 30, wholesale sales in the U.S. were down 13 percent.
“The turnaround of Billabong in the U.S. is particularly heartening, given that its our largest brand and will grow in the U.S. market for the first time in a number of years,” said Neil Fiske, CEO.
Fiske projected Q2 wholesale revenues in the region would be ahead 8 percent “with an important caveat that industry wide shipping delays due to West Coast port congestion could cut into that number before the half finishes.”
“Looking forward,” he added, “spring orders look very encouraging. Forward orders are ahead of comparable orders last year by 23 percent. Typically, these pre-book orders represent between 85 to 90 percent of a season, with the rest coming from so called at once orders in season. Any product shortages or constraints in the supply chain can cut into the number as well. So its important to understand that we look at these forward orders as leading indicators and not exact predictors of sales. But clearly we are encouraged by these results.”
RVCA is also showing some recovery. Wholesale sales in the U.S. for RVCA were flat in the first quarter ended Sept. 30 versus a 9 percent decline in the fourth quarter. Second-quarter sales are expected to be ahead 8 percent, again dependent on the West Coast port situation.
“Spring forward orders in U.S. wholesale are up 24 percent and we feel good about summer as well,” said Fiske.
A transcript of of shareholder meeting is here.
