The CEO of Australian-born skate and apparel business Globe International said the company is on track to deliver an FY25 with relatively flat revenues alongside profitability tracking up.
Speaking at its annual general meeting today, Matt Hill said this comes as the business targets further efficiencies and margin improvement after its profits lifted in FY24.
Globe International manages several brands, including its namesake brand Globe and its own labels FXD workwear and Impala roller skates, as well as acquired businesses such as Salty Crew and It’s Now Cool.
Net sales for the group company were down by 12 per cent to $222.3 million in FY24. Despite the fall, its operating profit (EBIT) was up 12.4 per cent to $17.1 million, with net profit up 10 per cent to $11.5 million.
International markets contributed $8.1 million of EBIT, making up 32 per cent of total EBIT, and follows an operating profit loss of $5.7 million in FY23.
According to Globe, the $17.1 million EBIT reported for the year generated a margin of 7.7 per cent on net sales, which compares to 2 per cent in the previous year.
“Looking to FY25, which is predicted to be another tough retail year, we are focused on maintaining our revenues, while again furthering the improvement in the quality of our earnings and shareholder returns,” Hill said.
“Our first quarter delivered solid results, with our brands continuing to perform strongly. Despite a challenging retail environment, where many retailers are down compared to last year, we are outperforming our competitors and demonstrating resilience in a difficult market climate.”
Moving forward, Hill said he and his team will concentrate on growing market share of its core brands while developing emerging brands to grow revenue and capitalise on new opportunities, “both complementary and diverse to our existing brand mix.”
Brand and operational excellence will guide our decision-making to sustain profitability and ensure we continue to generate positive returns for our shareholders,” he said.
Globe International has been in operation for nearly 40 years. Today, the business produces and distributes apparel, footwear and skate hardgoods – specialising in board sports, street fashion, outdoor, and workwear. Its brands are available in over 70 countries.