Globe International Limited, the Australian maker of apparel, footwear and skateboards, reported total revenues slipped 6.1 percent in the year ended June 30, as growth at home and in Europe failed to offset weaker sales in the United States and the effects of a stronger Australian dollar.
The company, which owns the Globe, Enjoi, Blind, Almost, Cliché, Darkstar, Speed Demons, Superior, Tensor and Gallaz brands, said sales reached AUD$83.1 million ($86mm), which was essentially flat with FY ’11 when measured in currency neutral terms. Revenues grew 4.3 and 7.7 percent respectively in Australasia and Europe, but declined 15.0 percent in North America, where the company had posted big sales gains the year before.
The Group generated EBITDA of $1.7AUD million, including AUD$1.0 million in other income relating to a legal settlement. That marked a 41.3 percent decline from the previous financial year. Lower gross margins resulted from a combination of sales mix, competitive market pressures and an increase in cost of goods. The last quarter of the year was also impacted by delayed footwear shipments which had been expected to arrive before the end of the financial year. Profits attributable to shareholders fell 94.3 percent to $AUD62,000, or 15 cents per diluted share, compared to AUD$2.63 in the year earlier period.
The company ended the year with AUD$14.5 million in inventory, up 14.8 percent from a year earlier.
“Given difficult market conditions around the world, and specific challenges our industry faces, we are pleased that our company remains stable and debt free and that we are able to continue to invest in our brands and growth programs despite modest expectations for financial performance in the next twelve months,” said Globe International Limited CEO Matt Hill.
