Global Brands posts 15 percent increase in H1 revenue
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Global Brands Group in its interim results for the six months ended September 30, 2016 said that revenue increased by 15 percent to 1,844 million dollars compared to 1,604 million dollars for the same period last year, driven primarily by growth from existing and new licenses.
“I am delighted we have delivered such a strong set of results. These were achieved despite facing a challenging business environment globally and fundamental shifts in consumer behaviour in our industry. These excellent results demonstrate the resilience of our business model and the success of our efforts to grow all four of our business verticals,” said Bruce Rockowitz, Chief Executive Officer and Vice Chairman of Global Brands Group Holding in a company announcement.
Global Brands reports revenue rise across business segments
The group’s total margin increased by 19.9 percent, reaching 655 million dollars, growing as a percentage of revenue to 35.5 percent. The company said, increase was mainly attributable to an improving business mix in favour of higher-margin businesses and sourcing optimization. Core operating profit increased 129.9 percent from the same period last year to 78 million dollars, while EBITDA increased by 44 percent to 179 million dollars. For the reporting period, the group’s adjusted net profit attributable to shareholders increased by 344.2 percent to 44 million dollars, compared to 10 million dollars for the same period last year.
Global Brands said that the reporting period saw continued growth across all four of the group’s business verticals: kids, footwear and accessories, men’s and women’s fashion and brand management. The kids vertical, the group’s largest, increased revenue by 10.3 percent to 813 million dollars compared to the same period last year, while total margin increased by 14.8 percent to 295 million dollars. Core operating profit of the segment increased by 147.4 percent to 49 million dollars.
Footwear and accessories vertical reported a revenue increase of 3.4 percent to 595 million dollars, while total margin increased by 6 percent as compared to the same period last year. Revenue for men’s and women’s fashion increased by 48.9 percent to 371 million dollars, while total margin increased by 55.4 percent to 155 million dollars. As compared to the same period last year, core operating profit increased by 88.5 percent to 32 million dollars.
Brand management revenue increased by 52.8 percent to 66 million dollars, while total margin increased by 41.3 percent to 16 million dollars.
Summing upPicture:Cole Haan