Australian retailer Billabong has cut its full-year earnings outlook and announced a capital raising as it launches another effort to turn its business around.
The surf-wear company blamed continuing poor retail conditions in Australia, Europe and the United States for again lowering its profit outlook.
It now expects earnings before interest and tax for the 2012 financial year to come in between $A130 - $A135 million, down from an earlier forecast of $A157 million.
The company hopes to raise $A225 million in a $A1.02 per share offering at a 44% discount to Thursday's closing price.
The funds will help the company repay some of its debt, but Billabong says it will still owe about $A100 million.