Globe International ready to expand again, opens Hong Kong, California stores

By

Olivier Guyot

Translated by
Nicola Mira

Published
Aug 30, 2017

The skateboarding material and apparel market is going through a troubled phase both in America and Europe. Globe International, which operates the Globe brand and several other labels specialised in skateboarding material and apparel, is no exception: its sales fell to AUD140 million (€93 million) in the last fiscal year, closed at the end of June, down 7% compared to the previous year.

According to the senior management of the Australian family group, founded by the Hill brothers, this was chiefly due to a decline in materials' sales in the northern hemisphere. Globe International has actually reorganised its North America business, launching the Salty Crew brand, and this allowed them to grow 2% in the second part of the fiscal year. However, not even the apparel sales increase in the second part of the year, and the concurrent rise in streetwear and workwear sales in Australia (+14%), were sufficient to compensate for the overall downturn. Sales in Europe were down 36% compared to the previous fiscal year, though the group stated that its business in the region remains profitable. Overall, Globe International's net income was up by AUD0.3 million, reaching AUD5.1 million.

In recent weeks, the Globe brand has opened its first flagship stores in Hong Kong and Hermosa Beach, California, and the group is confident that sales will grow again in the next fiscal year. "Thanks to brand diversification, to our strategy for improving margins and our cost-cutting efforts, the business has improved despite the downturn in sales. We are forecasting a return to growth in the 2017-18 fiscal year," said the group's CEO Matt Hill.