Struggling surfwear icon Billabong has warned it cannot carry on business as usual if a takeover by the owner of rival Quiksilver does not proceed, as the company reported worsening revenue and net loss for the first half of the year.

Billabong posted a net loss of A$18.4 million ($20m) for the six months to December 31, worse than A$13m a year earlier, while revenue declined seven per cent to A$476.4 million.

The company reiterated it expects full-year earnings of between of A$51.1m and A$54m just above its result for 2016/17.

Billabong chief executive Neil Fiske said the result reflected "ongoing difficult trading conditions in retail and much of the action sports sector".

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Fiske said despite efforts to address costs and streamline the business, the company was facing "systemic, structural" industry issues.