Global Brands Group Holding Limited reported a 28.5%decline in revenues for the 12 months ended March 31, 2020. The group’s revenues during this period stood at $1,082 million, a decline from $1,513 million reported last year. Global Brands is one of the globally leading branded apparel, footwear and fashion accessories companies.
While Global Brands accomplished its goal of returning to profitability during fiscal year 2020, the rapid global spread of COVID-19 in February and March negatively impacted its revenue towards the year-end. Amidst COVID-19, Global Brands has taken all possible actions to save additional cost, while “carefully” managing cash flow.
“During the reporting period, we have experienced one of our most rewarding and yet, one of our most challenging years,” said Rick Darling, CEO, Global Brands Group Holding Limited. “Throughout fiscal year 2020, we have diligently focused on executing our restructuring programme, and this dedication has resulted in strengthening our balance sheet and in improving our performance despite the unprecedented impact of COVID-19. The Group is now equipped to face the ongoing challenges brought about by the pandemic and is well-positioned for growth going forward.”
Global Brands pursued an ambitious restructuring programme during the reporting period focused on improving the company’s overall performance, strengthening the balance sheet and positioning for future profitable growth.
“The restructuring programme targeted three strategic priorities: firstly, improving total margin by establishing disciplined mechanisms for purchasing inventory and moving the Group’s sourcing closer to the needlepoint; second, reducing operating expenses in line with the new level of sales volume since the divestment of certain North American businesses and third returning to positive EBITDA. I’m pleased to report that through the efforts of the entire organisation during the reporting period, we have exceeded our plans in all three areas,” Darling added.