Board sports and streetwear apparel company Globe International advised that based on preliminary unaudited group management accounts, pre-amortisation net profit after tax for the financial year ended June 30, 2005 is expected to be in the range of A$5.0 million to A$5.5 million as compared to an expected result in the A$8 million to A$10 million range. The full year audit is not yet completed and Globe expects to announce its audited result in August. Revenue for the full year is expected to show an improvement of approximately 10% over the previous year, but below expectations of A$217 million.
The chief executive officer of Globe, Matt Hill, said that the lower than anticipated profit was a result of
poorer than forecast trading conditions in May and June, resulting from a contraction in retail demand in
Australasia, a delay in key footwear shipments, temporary sales shortfalls from Dwindle brands and a delay in
some European pre-book sales.
“In Australia we have also experienced the negative impact of weaker consumer sentiment that has resulted in
reduced early winter purchasing and this has particularly impacted our streetwear sales”, Mr Hill said.
“Whilst we have contained some of the adverse impact by tight controls on spending, we are disappointed that
our earlier expectations have not been met.
“In the year ahead, Globe remains confident of continued growth as the benefit of our increased marketing
activity flows through to the performance of our brands. We remain totally committed both to our strategy of
investing in our brands and to our vision for the future.”
