Australian company Globe Intl. reported an after-tax net loss of A$0.2 million versus a profit of A$12.5 million for its H1 ended Dec. 31 as revenues declined by 16 percent to A$120.5 million (€77.5m). Ebit came in at A$0.9 million, or 0.7 percent of sales, significantly below the 12.7 percent rate in the year-ago period. Higher freight costs and the strong U.S. dollar impacted H1 gross margins. Meanwhile, the group continues to invest in its existing core brands, including Salty Crew and FXD.
Globe Intl. said a drop in the hardgoods market significantly impacted sales and profitability during the six months as it addressed its own inventory issues. Globe Europe suffered a 30.7 percent decline in H1 constant currency sales due largely to the downturn in the hardgoods market. The operating segment is currently being reorganized. Meanwhile, net sales in North America and Australasia were down by half as much as Europe’s decline due to more diverse brand and category offerings.
In H2, the group forecasts net sales to decline less year-over-year as it cycles past a hardgoods peak in H2/21 and improved profitability. Globe, which has begun the process of simplifying its business and refining operations, says it will be profitable for the full year FY23.
