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Global Brands Group: Full year revenues increase 3.4 percent

By Prachi Singh

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Business

Global Brands Group’s revenue for the year to March 31, 2018, increased by 3.4 percent to 4,023 million dollars, compared to last year. The company said , this increase was offset, by Coach taking their footwear business in-house when their license expired in June 2017, and the cessation of the Quiksilver kids fashion license due to the company declaring bankruptcy. The company also announced its decision to sell a substantial part of its North American branded business to Differential Brands Group Inc. for a cash consideration of 1.38 billion dollars.

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Commenting on the transaction, Bruce Rockowitz, Chief Executive Officer and Vice Chairman of Global Brands Group Holding Limited, said in a statement: “We conducted a strategic review of the group to determine the best way to improve shareholder value. We concluded that divesting the portion of our business that has a high present-day value, was the way to move forward.”

Summary of Global Brands Group’s full year results

The group’s total margin increased from 28.5 percent to 31.2 percent, as a percentage of revenue. During the reporting period, the Group recorded 887 million dollars net loss on the prior year, while EBITDA remained relatively flat at 379 million dollars.

“Looking ahead, we will continue to attract new licenses to our portfolio with a tighter and deeper focus on our businesses. In addition, we have embarked on a significant cost reduction program across the organization and we are committed to improving our cash flow via a combination of tighter working capital management, and even stronger cost discipline,” added Rockowitz.

The company expects that its transaction with Differential Brands Group will lead to a stronger balance sheet and credit profile for the Group. By way of a special cash dividend in an amount of up to 0.325 Hong Kong dollar (0.041 dollar) per share, paid out of the proceeds from the transaction, the company said, shareholders will realize substantial value while continuing to be invested in the Group’s remaining businesses.

Picture:Facebook/Kenneth Cole

Global Brands Group
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