Global Brands back on track as margins and profit grow
Apparel, footwear and brand management group Global Brands has boosted its margin from 27.2 per cent to 33.4 per cent of revenues in the last six months.
“The increase was primarily attributable to the reduction of off-price sales levels and the strengthening of our sourcing capability, as the group moved certain functions closer to the needlepoint, where production is located,” said CEO Rick Darling.
“I’m pleased we have achieved a significant improvement in performance despite the challenging macro environment and changes facing the retail sector globally. This demonstrates our efforts to streamline the group’s operations have positively impacted our results.
While revenue dropped 5.2 per cent compared to last year, profit before tax, interest and depreciation returned to the black, up 304.4 per cent to US$80 million.
The group reports benefitting from greater efficiencies and synergies throughout its organisation.
“At the half-year mark … we have already exceeded both our initial target of US$100 million and subsequent target of US$140 million in operating cost reductions, which we had originally anticipated achieving by the end of this financial year,” added Darling. “While we continue to restructure and transform our business, our product expertise, unique global platform and channel-agnostic approach have put us on a path to sustainable growth.”