The Australian multi-brand skate, surf and swimwear company is forecasting the fiscal year 2023 marked by a modest sales increase compared to recent years. Also, there are expectations for a drastic decline in profitability and margins due to currency headwinds from the stronger U.S. dollar against the Euro and Australian dollar and a need to clear excess inventory.
During 2021-22, Globe Intl. generated 3 percent sales growth over the prior year when it was up 75 percent and Ebit of A$27.5 million or 10 percent of net sales. Revenues were bolstered by its apparel, footwear, and eyewear programs and from its Salty Crew and FXD brands. But sales of roller skates and skateboards suffered from lower demand in the post-Covid environment. Australia delivered the most profit contribution last year. North America was responsible for the company’s revenue growth as the European division struggled as lower hardgoods sales could not be offset by expansion in other categories.
In FY23, the group is forecasting apparel and footwear sales to continue increasing but at a slower rate in a tougher environment. During the first quarter, Globe said it experienced a “significant downturn” in market sentiment.
In a recent development, Globe International has acquired a 50-percent stake in It’s Now Cool, a female fashion swimwear brand. The group is assuming all operational functions for the brand, which has grown over the last two years, in Europe, Australia and North America.
