Signs of revival in the US cheer Billabong chief
Speaking to shop-eat-surf.com, Ms Inman said there had been a lift in performance in the US, which accounts for half of Billabong's more than $1.55 billion in annual sales.
"Europe is the issue, and Australia has had [its] issues as well," she told the US website. "While America did have its issues, it has turned the corner, particularly in the last six months.
"The most important region is the Americas, and that is where our biggest sales come from, it's got the greatest opportunity and it actually has turned. We are very happy with it."
Ms Inman has been touring the US over the past week as Billabong launches its new seasonal collection.
In fiscal 2012, Billabong posted $750.3 million in sales in the US, down 11.1 per cent as conditions triggered a sales slump.
Ms Inman said Europe and Australian were still challenging markets. "We're not seeing any signs of any green shoots [in Europe]. At times you think you are, then something happens, a change of government ... or something, and we just have to keep managing that."
She suggested Billabong might retain ownership of the skatewear chain West 49 despite the company being desperate for cash as it buckles under the weight of $300 million in debt, flagging sales and management turmoil in the wake of protracted takeover speculation.
Last year, Ms Inman promised to "cut the tail" off withering Billabong brands to allow her global team of designers to spend time on the top four labels that generate more than 70 per cent of annual sales.
Meanwhile, Billabong is thought to be in talks with US private equity firms Sycamore Partners and Altamont Capital Partners to refinance its balance sheet.
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Launa Inman said the key US market has begun to turn around from recessionary conditions, with a lift in performance particularly over the past six months. She described the Americas as the company's most important region and said she was "very happy" with the recent US improvement.
The US is highly significant: Billabong says the Americas account for the biggest share of sales, and about half of its more than $1.55 billion in annual sales come from the US market. In fiscal 2012 the company posted $750.3 million in US sales (down 11.1%).
According to Ms Inman, Europe remains in the doldrums with no clear signs of recovery — political changes and other events can stall momentum — and Australia has experienced issues as well, making both markets more challenging than the improving US.
Ms Inman said Billabong planned to "cut the tail" by trimming withering brands so the global design team can focus on the top four labels that generate more than 70% of annual sales.
The article notes Billabong is carrying about $300 million in debt amid flagging sales and management turmoil. The company is reportedly in talks with US private equity firms to refinance its balance sheet.
Ms Inman suggested Billabong might retain ownership of West 49 despite the company needing cash, indicating sale of the chain is not a certainty even as the business weighs options.
Billabong is thought to be in talks with US private equity firms Sycamore Partners and Altamont Capital Partners about refinancing its balance sheet.
Investors should watch US sales trends (the Americas are the biggest opportunity), progress on brand rationalisation focused on the top four labels, any developments in refinancing or private equity talks, and ongoing performance in Europe and Australia, which the company says remain challenging.
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