Billabong International (BBG)

Shares / Stock Code

BBG

Stock Exchange / Sharemarket

ax

Billabong International Limited (BBG) is an Australia-based company engaged in the production and distribution as well as the wholesaling and retailing of skate, snow and surf apparel and accessories. It is also in charged of the licensing of the trademark of the group to particular regions in the world including Australia, Europe, North America, New Zealand, Brazil and Japan. BBG was listed on the Australian Stock Exchange on the 11th of August, 2000. Its average annual revenue reaches approximately AUD$1.2 million. Its headquarters is located in Burleigh Heads, Australia and to date; around 1,750 people are employed in the company. Billabong International Limited operates mainly in six business concepts: Billabong, Beachworks, Element, Honolua, Amazon and Beachculture.

Billabong provides the complete range of the products of Billabong International Limited. Beachworks is Southern California, Japan and Europe based sport retailer for multi-branded sport. Element is in charged of the supply of the apparel, hardware and accessories of the company. Honolua operates mainly in Hawaii and is a retailer of multi-branded surf. Amazon is a multi-branded retailer operating mainly in its 19 stores in New Zealand and Beachculture is a retailer located in the main domestic and international airports in New Zealand and Australia.

The key brands of the company include Billabong, Kustom, Element, Honolua Surf Company, Palmers and Nixon. Billabong is the foundation brand of the company and is one of the major brands in the sports sector around the world specifically in the surf sector. Billabong is also in charged of the marketing and sales of technical skate and girls' footwear under the Element brand while Kustom is a footwear brand being with its main market in Europe. Honolua Surf Company has its main operation in Hawaii while Palmers provides surfboard wax accessories across Australia.

Billabong International (BBG) Company History

Gordon Merchant and Rena Merchant established Billabong International which was only cottage industry in 1973. The international operations of the company started in 1983 and they attempted to get into the US market. The expansion in New Zealand started in 1985 and in the European market in 1987.

Merchant controlled Billabong until 1998 and Rena Merchant decided to sell her 49% stake. Professional management was brought in by Gordon Merchant and the company began to sail in 2000 and the stocks started to be traded on the Australian Stock Exchange. The company obtained all the issued capital of Thin Air and created a wholly-owned subsidiary in Japan in 2001.

Billabong got into skateboarding apparel and accessories business under Element brand in 2001. It extended into the South American market when it started its operations in Brazil. US skate clothing manufacturer Element and Von Zipper, sunglasses and snowgoggles brand were obtained by Billabong in 2002.

Honolua Surf Company was acquired in 2004 by the company and this became the first important step into the footwear sector. Billabong introduced a flagship retail store in New York’s Times Square in the latter part of 2004. Element brand was also used into the footwear category in 2005. In the same year, Billabong partnered with airport – based surfwear retailer beachculture.19 stores and seven stores situated in the domestic and international terminals in Sydney were part of the arrangement.

Nixon which is a leader in the premium watch and accessories boardsports market in California became a part of Billabong in January 2006. April 2006 marked the selection of Maria Manning as the Billabong’s Secretary.

Amazon surf retail chain, the largest surf retailer in New Zealand was bought in November 2006 by the company. Xcel, the US based wetsuit and technical water-sport accessories brand which centered on surfing, wakeboarding, ocean paddling, diving and sun protection was obtained by Billabong in September 2007.