Skate and apparel business Globe International has reported a 13 per cent lift in sales across its three core apparel brands – FXD workwear, fishing apparel brand Salty Crew and Globe footwear – alongside a lift in earnings for the first half of FY25.
Despite this lift, overall sales across the group fell by 12 per cent to $95.3 million. The Globe business also includes skate brand Impala Skate, swimwear brand It’s Now Cool, and two key distributor divisions.
The business sells and distributes goods across more than 70 countries.
According to Globe, the fall in total revenue was due to planned transition in brand mix towards higher-margin brand portfolio, alongside $15 million of non-core revenue being intentionally eliminated in the first half.
Globe noted that its FXD brand is continuing to grow in North American premium workwear, with a five-year compound annual growth rate of 53 per cent.
Salty Crew revenue also continues to grow with a five-year CAGR of 16 per cent.
Meanwhile, Globe heritage footwear coming on trend and growing, with a year-on-year growth in international markets of 11 per cent, which is expected to be driven further after its recent launch into safety gear.
“Management's conscious decision to focus on more stable apparel market, versus highly cyclical hardgoods industry has reduced contribution to c. 8%,” the company shared in a subsequent investor presentation. “Lower cyclical revenue will result in more stable underlying profit and cashflow.”
The group’s earnings before interest and tax (EBIT) was $7.1 million for the half, down 3 per cent on the prior year. Its net profit after tax (NPAT) was $4.8 million, also down 3 per cent.
“Globe International’s long-term strategy of building stronger, more profitable brands remains on track,” CEO Matt Hill said. “The work we have done and the strategic initiatives we have implemented have improved profitability, and laid solid foundations for further, high-margin growth.
“We expect to see the benefits continue to flow through to the second half of this financial year.
Hill reported that the group’s core and emerging brands are performing strongly and increasing market share despite challenging conditions.
“Pleasingly, we achieved solid momentum across all regions, with international operations growing their contribution to overall group performance.”
Globe International also reported $8.7 million in operating cash flow in the half. “With healthy debtor and inventory balances, combined with a net cash position of $17.3 million, the group has a very strong balance sheet that provides the flexibility to support the execution of its growth strategy,” the group reported.
Amid this, Globe declared a fully-franked interim dividend of 10 cents per ordinary share, up from 9 cents in the prior period.
“Globe International remains a stable yet ever-evolving global brand house, based on a mix of builtfor-purpose core and emerging brands,” Hill said. “Our core brands are operating in markets with significant long-term growth potential, which gives us confidence that we are on track to return to revenue growth in the second half of FY25 and grow returns for shareholders.”