significantly deteriorated in the months to December, forcing it to issue a blistering profit downgrade.
Billabong shares collapsed $1.61, or 44 per cent, to $2.03, marking their biggest drop since the company went public in 2000. Its shares have lost 75 per cent in 2011, taking them below the $2.30 initial share price offering 11 years ago.
Its warning comes as rival Quiksilver said at an earnings briefing last week that trading conditions were proving increasingly tough with the key market of Australia showing recession-like conditions.
It is also the second major retailer to recently issue a profit warning, with JB Hi-Fi last week slimming its earning forecasts as it too faced a tough lead into Christmas and the new year.
Billabong said today that its constant currency sales growth trend had slowed from 6.2 per cent in the three months to September 30, to 2.8 per cent for the four months for the four months to October and only 0.4 per cent for the five months to November 30.
The company blamed a string of problems for its slowing sales and earnings including a slowdown at its company owned European stores, a late start to winter in the northern hemisphere which had pushed back orders, cold and wet weather in parts of Australia and challenging trading conditions in North America.
