Globe International – the company behind FXD, Salty Crew and Globe footwear – has reported a 7.2 per cent fall in net sales for FY25.
This comes after a “deliberative” removal of non-strategic brands, which led to an associated revenue impact of $25.5 million in the last financial year.
According to Globe, the removal of non-strategic brands is in line with its strategy to focus on higher-margin global brands.
Globe did not confirm which brands it had discontinued, but the company’s CEO Matt Hill said the move has removed lower margin sales and led to both revenue growth and improved margins in its core brands FXD, Salty Crew and Globe footwear.
“The adjustment to brand mix not only delivered a solid and profitable end-of-year result from a more focused business but also lays the foundation for a growth platform in FY26 and beyond,” Hill said.
The three aforementioned brands form part of the company’s proprietary brands, which also include X/DMG, according to its website. The company also manages a range of third-party brands, including XLarge, S/Double, and Stance.
Alongside the fall in net sales for the year, which hit $206.3 million, the group also reported a 14.3 per cent fall in earnings before interest and tax (EBIT) to $14.6 million. Globe’s net profit was also down by 14.6 per cent to $9.8 million.
Despite the EBIT slip and the missed revenue from the write-off of non-strategic brands, Globe noted that underlying sales have increased, and its international divisional performance improved, particularly in the United States.
The European division was flat on the prior year as it undertook significant operational projects to improve capacity and better support divisional growth.
The company added that although the Australian division incurred the impact of the removal of non-strategic brand revenue, the division continued to be the most profitable region with the strongest profit margins, reportedly due to disciplined management and the successful introduction of three new brands.
Hill said the overall result reflects all regions positively contributing to group profitability.
“Australia remained the strongest performing region with a 12.6 per cent segment EBIT margin, despite a weakened retail environment. Amidst the backdrop of the USA tariff increases, the North American business produced a solid EBIT margin and impressive gross margins, while the European business, having completed a restructure of the division, produced a modest profit, positioning itself for increased financial performance over FY26.”
Following the FY25 results, the Globe board declared a fully franked final dividend of 10 cents per share
Looking ahead, Hill said the current unpredictable geopolitical and economic environment makes accurate forecasting a challenge.
“At this stage, if conditions remain consistent, based upon the inroads and growth of our strategic global brands in FY25, the start to this financial year, and our brand platform for global growth, we expect the business to grow revenue and profits in the FY26 year and continue providing solid returns to shareholders.”
Hill added that the announced dividend marks a 10-year anniversary of paying a dividend every half year, translating to twenty consecutive dividends – “a record we are proud of.”