Surfwear retailer Billabong International Ltd has downgraded its earnings guidance for fiscal 2009 due to further deterioration in trading condition, particularly in the United States.
Billabong said it now expected earnings per share (EPS) growth in the range of six per cent to ten per cent for the 2008/09 financial year, down from the previously forecast 12 per cent to 16 per cent.
The earlier guidance was provided in October.
Billabong said it had seen further softness in trading conditions.
"The softness, which is being seen at both the wholesale and company-owned retail levels, particularly in the US, has accelerated throughout November," it said.
The global retailer said the new forecast assumed a revised annual average exchange rate of 75 cents for the AUD/USD and an unchanged 55 cents for the AUD/Euro.
The revised guidance implies full year sales growth of over 25 per cent and earnings before interest, tax, depreciation and amortisation (EBITDA) growth around 20 per cent.
Billabong said the difference between forecast EBITDA growth and forecast EPS growth related primarily to higher depreciation and amortisation and higher interest costs, relating mainly to borrowings for recent acquisitions.
