Globe International expects to grow revenue and profits in the 2026 financial year, following a strategic shift to focus on its core global brands which showed continued growth in FY25 despite what the company described as challenging market conditions.
The company, which designs, produces, and distributes products in the boardsports, street fashion, outdoor, and workwear markets, reported its financial results for the full year ended June 30, 2025, late last month, and we are catching up on them.
The forecast for growth in FY26 is based on the performance of its strategic global brands in FY25, how the current financial year has started, and its platform for global expansion.
“If conditions remain consistent… we expect the business to grow revenue and profits in the FY26 year and continue providing solid returns to shareholders,” Globe International CEO Matt Hill said in a statement.
Exiting Non-Strategic Brands Leads to Revenue and Profit Declines
However, the company decided to exit non-strategic brands, which negatively impacted revenue by $25.5 million for the year. It did not disclose which brands it has moved on from.
“Globe International has committed to concentrating on its global brands which present long-term scale and growth potential,” Hill said in a statement. “In FY25 the company has been disciplined and deliberative in the removal of non-strategic brands… Importantly, this has removed lower margin sales and led to both revenue growth and improved margins in our global brands of FXD, Salty Crew and Globe footwear.”
For the 2025 financial year, Globe International reported:
- Net Sales: AUS $206.3 million ($136.1 million), down 7.2% compared to FY24.
- EBIT (Earnings Before Interest and Taxes): AUS $14.6 million ($9.6 million), down 14.3% compared to FY24.
- NPAT (Net Profit After Tax): AUS $9.8 million ($6.5 million), down 14.6% compared to FY24.
The board declared a fully franked final dividend of 10 cents per share, bringing the total FY25 dividend to 20 cents per share. This is the company’s twentieth consecutive half-year dividend.
Brand and Regional Performance
During the year, the company said FXD footwear and apparel, Salty Crew men’s and women’s apparel, and Globe footwear all showed growth. It also reported progress in its emerging brands, Szade eyewear and X/DMG workwear, and launched two new brands, S/Double streetwear apparel and Ritual Vision surf eyewear.
From a regional perspective, all three major operational bases in Australia, the U,S., and Europe contributed to profitability, the company said.
- Australia: The region delivered $12.7 million of segment EBIT at a margin of 12.6%. The company said the Australian division was its most profitable region, navigating what it called a “tightening retail market.”
- USA and Europe: The two regions contributed a combined $9.4 million of segment EBIT, an increase from $8.1 million in FY24. The North American business produced a solid EBIT margin, while the European business completed a restructuring of its division, including an office and warehouse move, to position it for future growth.
Globe International also continued its Environmental, Social, and Governance (ESG) programs. Its Wood Off-Set Program has now planted over 145,000 trees, and, as a founding partner of the Tread Lightly shoe recycling initiative, it has helped divert over 1.5 million pairs of footwear from landfills.
