Billabong (ASX:BBG) is a major international retailer whose core business is the marketing, distribution, wholesaling and retailing of apparel, accessories, eyewear, wetsuits and hardgoods.

BBG’s products are licensed and distributed in more than 100 countries, and are distributed through specialised retailers and through their own branded retail outlets.

Billabong provided the market with a trading update today, in which it announced a strategic review of its operations and capital structure after a slowdown in Christmas sales.

The company also downgraded its EBITDA guidance for the first half of FY12 to $70-$75 million compared to the previous corresponding period’s $94.6million

Billabong said reasons for the slowdown varied by region, but it believes fears of a global recession are impacting consumer confidence and spending patterns.

Billabong has been one of the shares to sell amongst recent times.

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Billabong (BBG) is a major international retailer whose core business is the marketing, distribution, wholesaling and retailing of apparel, accessories, eyewear, wetsuits and hardgoods under various brands.

BBG has been one of the shares to sell in 2010 amid declining consumer demand brought about rising interest rates and financial market volatility.

On 15 December, BBG downgraded its first half profit guidance.  The group now expects 1H11 net profit to fall 8% – 13% from a year ago, compared to its previous guidance of only a slight fall.

1H11 EBIT is expected to slump 25% on-year, primarily due to unseasonable weather impacting sales and weaker-than-expected consumer spending patterns in Australia.

Furthermore, sales in the US have been impacted by a shift in seasonal orders, which will push expected sales into the 2H10.

As a result, Billabong is now forecasting full year net profit to be flat on-year, compared to the previous 2% – 8% growth.

BBG shares sank 8.9% on its revised guidance, making it one of the worst performers in the Australian share market.

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