Workwear and streetwear business Globe International expects to return to revenue growth in FY27 after a year of flat sales, despite what it describes as a challenging retail environment.
At the company’s annual general meeting, CEO Matt Hill said Globe’s core brands, FXD, Salty Crew and Globe, performed well against market competitors in the first quarter of FY27. He added that the business maintained solid profitability and financial stability over the period.
“Looking ahead to the current financial year, retail environments are challenging, but our brands are holding up well,” Hill said.
Hill said first-half revenue is expected to come in lower than the second half, which the company attributes to the seasonality of its sales. However, Globe currently expects the full year to deliver both revenue and profit growth, alongside continued dividend returns to shareholders.
The outlook was presented as the company’s current expectation. Globe did not put figures on the growth it is forecasting.
The guidance marks a shift from FY26, when Globe’s earnings growth came from margin rather than sales. Revenue was $206.4 million, up from $206.3 million the year before. Meanwhile, EBIT grew 13.4 per cent to $16.6 million, and net profit after tax rose 12.3 per cent to $11 million. The company’s EBIT margin improved by 90 basis points to 8 per cent.
Hill attributed the result to the repositioning of Globe’s brand mix and the restructure of its European operation in the prior year. The company has rationalised its portfolio to focus on three core brands with high margins, growth potential and global scalability. Those brands delivered $183.1 million in sales in FY26, close to 90 per cent of group revenue. Hill said higher-margin brand sales drove the profit improvement.
The Australian and North American divisions remained the group’s main revenue and EBIT contributors, driven primarily by FXD and Salty Crew respectively. Australia, which accounts for just over half of group sales, saw revenue slip by around $1 million to $99.5 million, while its EBIT grew by $3 million to $15.7 million.
In Europe, the restructure has begun to pay off. The European division grew revenue by 19 per cent and EBIT by 312 per cent on the prior calendar period, driven by growth in Salty Crew and Globe in the region. On a financial-year basis, European segment EBIT rose to $1.1 million in FY26, up from $300,000 in FY25.
The FY26 result allowed Globe to lift dividends related to the year to 23 cents per share, up 15 per cent on 2025. Its final dividend returned $5.4 million to shareholders. The company has now paid dividends for 11 consecutive years, and added that its dividend yield significantly outperformed the S&P/ASX 200 average return for FY26.
Globe is an ASX-listed, Port Melbourne-based company, founded by brothers Peter and Stephen Hill. It began by marketing skateboarding to Australia and has since expanded into surf, workwear, outdoor and street fashion. It now has operations in Australia, North America, Europe and China.