Globe International Limited (Group), owner of the Globe, Salty Crow, FXD, Impala Skate, and X/DMG brands, saw a return to revenue growth across the Group despite “challenging trading conditions.”

The Group reported revenue for the fiscal 2026 first half (H1) ended December 31, 2025 increased 3 percent to A$98.2 million (~US$64.8 mm), compared to A$95.3 million for the prior-year H1 period, due to a continued focus and solid performance from its global brands which present long term scale and growth potential, notably FXD, Salty Crew and Globe.

Globe International Limited reports in the Australian dollar (A$) currency. All conversion to U.S. dollars (US$) was calculated at the fiscal first half end of 1.00 Australian dollar = 0.66 U.S. dollars.

Brands
“Core brands of Salty Crew, FXD and Globe contributed strongly to Group revenue and profit,” offered Group CEO Matt Hill in the company’s earnings release. “Salty Crew grew in the half, with the brand growing well in traditional doors, new product categories and the broader outdoor market. FXD continued to be a powerhouse in its workwear market and a large contributor to company revenue and profit while [the] Globe brand grew in all regions.”

Regional Summary

  • Australian region reportedly had an improved business mix in the first half, resulting in higher margins and profitability growth.
  • U.S. revenue growth came in at 3 percent year-over-year on a like-for-like brand basis, said to be amid challenging market conditions and temporary margin impact of tariffs. The company has expectations of improvement in revenue and profitability in the second half of the fiscal year ended June 30.
  • European sales performance was described as “strong,” with growth of 21 percent year-over-year, reportedly benefiting from an operational reset.

Profitability and Cash Flow
The Group touted strong gross margin management in the first half, despite U.S. gross margins being temporarily impacted by tariffs, with improvements expected in H2 2026. EBIT (earnings before interest and tax) amounted to A$5.2 million in the first half, compared to A$7.1 million in the prior-year H1 period.

In the first half of the year, the Group delivered EBIT of A$5.2 million (~US$3.4 mm), 5.3 percent of net sales. While EBIT was down $1.9 million year-over-year, the result was said to be impacted by the short notice of the introduction of increased tariffs in the U.S. that affected the first half of the financial year in the region.

“Swift action was taken to absorb this new operating environment into the financial planning of the business in the USA, and, as such, at the current levels, tariffs are not expected to impact performance in the same way going forward,” commented Hill.

NPAT (net profit after tax) was A$3.4 million (~US$2.2 mm) in H1, compared to A$4.8 million in H1 2025.

The Group said it saw “solid cash flow” and financial position with a strong balance sheet and net cash of $19.3 million (~US$12.7 mm) at period-end.

Capital Management
At December 31, 2025, the Group’s cash position – net of working capital borrowings – was $19.3 million, which was said to be consistent with the net cash position at the end of the 2025 financial year.

Cash generated from operations was $7.4 million (~US$4.9 mm), driven by a $3.3 million reduction in working capital associated with a decrease in trade receivables during the period, offset by traditional seasonal inventory build at the half-year. Cash utilization during the half year was driven by non-operating factors, including dividends and capital expenditure.

Taking into consideration the Group’s earnings performance, strong balance sheet, and outlook for the business, the Board has declared a fully franked interim dividend of A$0.10 per share, flat to the fiscal 2025 first half dividend. The interim dividend will be paid to shareholders on March 27, 2026.

Outlook
Looking ahead, the Group said foundations are now in place for growth, with expectations of revenue and profit increase in the back half of the fiscal year, with the full year expected to be ahead of fiscal 2025.

“Having now dealt with the brunt of the short-term challenges of tariffs in the first half, the Group emerges with improved margins in core brands and a stronger platform from which to deliver sales growth and improved profitability into the future,” Hill noted.

“Globe continues to deliver upon its strategic objectives of focusing increasingly on higher sales and margin growth in its global brands,” Hill concluded. “The Group held up extremely well financially in the first half of the financial year, delivering growth, returns to shareholders, and dealing with the broader economic challenges presented during the trade period. Following this period, Globe emerges with a strong balance sheet, performing brands and improved margins, which is anticipated to drive revenue and profit growth in 2026.”

Image courtesy Salty Crew/Globe International Limited