Late last year, Apex Global Brands, previously called Cherokee Global Brands, signed several new licensing and distribution contracts for Hi-Tec with partners in Europe, North America and Asia. In Europe, Hi-Tec is now present in major retail chains such as Urban Outfitters and Foot Locker. Initially known as a footwear brand, Hi-Tec has diversified its product range under its new ownership. It launched its first men‘s and women‘s wear ranges a year ago, using streetwear trends with a sporty appeal to propel sales. Nevertheless, the group’s revenues for its fourth fiscal quarter ended on Feb. 1 fell by 10 percent to $5.5 million, as royalties from Hi-Tec and Magnum declined internationally. The management blamed this on the uncertainty surrounding Brexit and exchange rate fluctuations. The company also blamed the decline on the non-renewal of Apex’s Cherokee license in South Africa and of its Tony Hawk license in Canada. The group’s adjusted Ebitda decreased to $2.4 million from $3.1 million for the year-ago period, leading to a net loss of $1.1 million, compared with net income of $0.2 million. For the full fiscal year, revenues were down by 14 percent to $21.0 million, due in part to reduced royalties from the company’s licensees in Europe. The adjusted Ebitda decreased to $7.8 million from $9.8 million for fiscal 2019. The net loss remained flat at $11.5 million. More in The Outdoor Industry Compass.

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