Billabong Shares Dive Deeper By 11pc

Submitted by Share Market Writer on 20 December, 2011 - 13:43

Billabong International (BBG) shares have dived deeper today after it announced a 26 per cent decline in its half year earnings and closed its stock price at $2.03 yesterday. Shares of the surfwear retailer declined further today by 11 percent to $1.81, the lowest since the company went out in August 2000 with an issued price of $3.15.

Chief Executive Derek O'Neill yesterday said that apart from European debt issues and fears of global recession, sales have also suffered due to the weather conditions in Europe and Australia. Late start of winter and limited snowfalls have lessen the snowboarding apparel sales in Europe, while summer starts off cold in Australia, affecting the sales of beachwear.

Billabong closed at $3.64 last Friday and fell by 44 percent to$2.03 yesterday. The company's stock has lost more than three quarters of its woth this year.