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SURFWEAR and lifestyle retailer Billabong (ASX: BBG) has suffered a share price fall of more than seven per cent after it cancelled an omni-channel solution provider agreement which will result in a $11.7 million impairment in FY17.
The company says it's committed to rolling out its own omni-channel solution and it has also confirmed that the first of its new e-commerce websites, Surf Dive 'n' Ski will launch before the end of the calendar year.
At around 2pm (AEST), BBG shares were trading down just over seven per cent at $0.76.
The omni-channel service provider had been engaged to integrate its wholesale, retail and e-commerce stores along with its social media platforms.
The Gold Coast-based company has struggled with sales and growth over several years and its half year report released in February revealed total group sales down 9.5 per cent year-on-year to $508.3 million.
It took in $39.3 million in earnings before interest, taxes, depreciation and amortisation (EBITDA), adjusted for significant items. This result was down 21.1 per cent.
The company is still loss-making, reporting a loss after tax of $16.1 million.
Business News Australia
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