Shares in Billabong have skidded as the struggling surfwear retailer said it will take an $11.7 million hit after terminating the service provider engaged to integrate its wholesale, retail stores, e-commerce and social media platforms on line.
Billabong shares finished six cents, or 7.3 per cent, lower at 76 cents on Friday.
The retailer said despite the impairment it remains committed to rolling out its “omnichannel solution” – part of a strategic turnaround implemented over the past 12 to 18 months.
The company says it expects to do so close to its original budget estimate and anticipates the first of its new e-commerce websites, Surf Dive ‘n’ Ski, will be launched before the end of 2017.
In February the retailer downgraded its full-year earnings guidance after its first-half loss widened to $16.1 million.
The Gold Coast-based retailer said at the time it expected full-year earnings before interest, tax, depreciation and amortisation (EBITDA) of between $52 million and $57 million, down from the previous forecast of $60 million to $65 million.
The company had flagged that full-year earnings would rely heavily on the second-half, when the Americas business is expected to pick up significantly.
Billabong will release its full-year results on August 30.
In June, the surfwear brand appointed ex-Nordstrom executive Jim Howell as its chief financial officer, replacing Peter Myers who has served in the role since January 2013.
Billabong also recently sold off the Tigerlily brand from its portfolio, as part of trimming the business and paying down debt.