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Bad News for Beach Bums: Billabong is Worthless

The Australian surfwear retailer, Billabong International Ltd., famously popular among those drawn to sandy shores and crashing waves, is precariously navigating some turbulent financial waters. The company recently reported a $776 million loss for the year ending in June, a considerable leap from last year’s $247 million loss.

As a result of the losses and the widespread anticipation of more to come, Billabong’s business costs now outstretch its incoming revenue. At the conclusion of June, the company is estimated to be worth approximately $81 million. At the end of 2011 it was valued at $550 million.

According to Michael Simotas, an analyst at Deutsche Bank AG, Billabong has suffered from “continued difficult trading conditions, particularly in Europe” and has struggled with the fact that “consumer sentiment continued to weaken and warm weather weighed in on winter apparel sales.”

Billabong’s stock has plummeted 32 percent this year, closing yesterday at $50.63.