Billabong International upgraded its guidance due to the benefits of a falling Australian dollar. At the company’s annual general meeting in Australia, Billabong CEO Derek ONeill said that Billabong now was forecasting earnings per share growth of 12% to 16% in fiscal 2009, despite falling sales.
“There has been a dramatic fall in the value of the (Australian dollar), in particular against the [U.S. dollar] and the euro, ONeill said. “After so many years of watching the company’s reported profits eroded by an appreciating AUD, there is now the prospect of strong reported gains from a depreciating AUD.
In the latter part of September and the first two weeks of October, “consumers retreated from traditional spending patterns to digest the new economic landscape. However, at this stage, the company still anticipates it will be delivering double-digit sales growth.”
