Global Brands Group nears $4 billion in sales

Global Brands Group has reported an 11.6 per cent increase in sales to US$3.891 billion in the year to March, driven primarily by growth from new and existing licenses.

Noting the third anniversary of Global Brands Group’s listing after its spin-off from Li & Fung Group, CEO Bruce Rockowitz said it recorded one of the strongest levels of top-line growth in the industry. Both margins and profitability improved.

“This demonstrates the strength of our business strategy and our success in capturing growth opportunities.”

The group’s total margin continued to trend higher, increasing by 19.8 per cent, reaching $1.416 billion, and growing to 36.4 per cent as a percentage of revenue. Net profit attributable increased 89.4 per cent to $90 million.

“The increase was mainly the result of improving the business mix with higher-margin businesses and sourcing optimisation,” the company said in a statement. Operating costs for the reporting period increased by 15.5 per cent to $1.242 billion, primarily due to investments in key brands and the addition of new licences.

Rockowitz said the group continued to reap the benefits of its flexible licensing model, diversified brand portfolio, and strong relationships with multiple distribution channels around the world. All four business verticals – kids, men’s and women’s fashion, footwear and accessories, and brand management – recorded improvements.

Kids, Global Brands’ largest division, reported a 3.9 per cent revenue increase to $1.603 billion, with total margin up 9.9 per cent and core operating profit up 62.2 per cent. Men’s and women’s fashion, the fastest-growing division, saw revenue increase 31.5 per cent to $820 million. Footwear and accessories reported revenue of $1.281 billion, an increase of 5.6 per cent year-on-year. Brand management revenue increased 75.7 per cent to $188 million.

“Over the past few years, the industry has experienced dramatic change,” Rockowitz said.

“The traditional retail model is no longer sustainable, and success now requires a sophisticated omnichannel strategy. With our flexible licensing model and channel agnostic approach, we see considerable upside in these disruptions, and we are well placed to benefit from the resulting structural transformation in the industry to maintain our growth momentum.

“Global Brands is both the partner of choice and the partner for the future.”

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