Several brands in the Globe International Limited portfolio managed to grow in the fiscal year ended June 30 despite the pandemic.
Globe skateboards, Salty Crew, Impala and workwear brand FXD posted revenue increases, according to the company.
Total company revenue for the year fell 5% to A$151.6 million (US$108.6 million at current exchange rates) largely due to the sale of the Dwindle skate brands during the financial year.
According to company reports filed with regulators, Globe International sold the Dwindle brands to Highline Industries Corporation for a total of A$7.1 million (US$5.1 million), inclusive of a deferred payment due in November of this year.
Highline Industries is a portfolio company of Transom Capital Group designed to focus on the specialty market. Transom also owns Bravo Sports, which has acquired a wide range of brands including Sector 9, Pro-Tec, Six Six One and Nutcase over the years.
Dwindle and its roster of core skate brands, including Almost, Blind, Darkstar, Enjoi and Speed Demons, were part of the sale.
Globe opted to sell Dwindle to reduce the number of smaller brands it owns and have fewer brands in each product category. The company said it now has a much better balance of apparel, footwear and skateboard hardgoods brands.
Globe International Regional Results
Globe’s Australian division, which is typically the star performer for the company, reported a decrease in revenue this year due to its licensed streetwear division. Licensed streetwear felt the impacts of the COVID-19 disruption the most. Division revenue totaled A$79.3 million (US$56.8 million).
North America revenue fell 13% due to the sale of Dwindle, but EBIT increased. Salty Crew, Impala and Globe skateboards all grew for the year in the region. North America revenue totaled AUS$46.8 million (US$33.5 million).
In Europe, revenue increased 8% but earnings declined. European revenue totaled AUS$25.6 million (US$18.3 million).
Total company Net Profit After Tax totaled A$6.1 million (US$4.4 million), which was A$2.1 million (US$1.5 million) lower than last year. The company said that was largely due to an increase in the effective tax rate for accounting purposes.
“We started out this financial year with some very clear objectives,” CEO Matt Hill said in a statement. “These objectives included completing the strategic brand overhaul to reduce the number of smaller brands in our global operations. We achieved this through divestment of the Dwindle skate brands, and refocusing this energy towards Globe branded skate hardgoods, which achieved solid growth in this financial year.
“For our remaining brands, the goal was to achieve sales growth outside of Australia, which was achieved with sales growth in both North America and Europe with continuing brands. We planned to significantly improve our cash from operations through the reduction in our working capital balances, and we did. It’s gratifying that we have been able to deliver on these objectives and maintain financial stability, despite the global COVID-19 pandemic obstacles.”
