Global Brands Group: H1 profit up, revenues decline 3.5 percent

Global Brands Group Holding announcing its interim results for the six months ended September 30, 2017 said that revenues decreased by 3.2 percent to 1,785 million dollars compared to the same period last year. The company said decline in sales was driven by the shift of retail buying to later in the year, in addition to the anticipated cessation of the Quiksilver kids fashion license due to the company declaring bankruptcy and Coach taking their footwear business in-house when their license expired in June 2017.

Commenting on the business environment, Bruce Rockowitz, Chief Executive Officer and Vice Chairman of Global Brands Group Holding, said in a media statement: “This is the first year of our second three-year plan. As in the past, the first year is always an investment year and we concentrate on investing in our core business and upholding our position as a licensing partner of choice. Looking ahead, we expect activities with major new brands like BCBG will increase, and the delayed buying by key retailers will have positive impact on sales. Therefore, for the full fiscal year, we expect top line growth will be consistent with our three-year plan targets.”

The group’s total margin increased from 28.3 percent to 30.5 percent, which the company said was primarily due to sourcing optimization. As a result of the increased total margin and lower operating costs, operating profit for the reporting period increased by 94.1 percent to 80 million dollars, while net profit attributable to shareholders increased by 25 million dollars to 26 million dollars, as compared to the same period last year.

Picture:Global Brands Group website