Global Brands Group FY15 net profit up 11.9 percent

Global Brands Group Holding, in its second interim results for the 12 months ended December 31, 2015 has said that its overall turnover stood at 3,423 million dollars, compared to 3,454 million dollars for the same period in 2014.

“The financial performance we achieved for 2015 despite a challenging market environment is a testament to the resilience of our business model and the strength of our brand portfolio. 2015 saw us successfully capitalize on a number of strategic growth opportunities, both organic and through selective acquisitions, which set the stage for the positive performance of Global Brands in the coming financial year,” said Bruce Rockowitz, Chief Executive Officer and Vice Chairman of Global Brands Group.

Turnover affected by different factors

The company said that during the period, the Group’s turnover was impacted by key factors including a decrease in the euro exchange rate, an unseasonably warm winter in North America and the tail end effect of the Group’s exit from certain underperforming brands.

Total margin continued to trend up strongly, reaching 1,170 million dollars and its grew as a percentage of turnover to 34.2 percent in 2015 from 33.9 percent in 2011, hitting the Group’s Three-Year Plan target one full year in advance. As a result of the Group’s investment in key controlled brands and the addition of new licenses to the portfolio, operating costs increased by 3.8 percent. Core operating profit increased by 10.5 percent, while net profit for the period was up 11.9 percent, as compared to the same period last year.

“We continue to invest in and strengthen our Licensed and Controlled Brands platforms,” said, Dow Famulak, President and COO of Global Brands Group, adding, “Within Licensed Brands, our entertainment characters business performed especially well due to our long-established partnerships with major character franchises globally. On the Controlled Brands side, we made excellent progress in growing our brands, most notably Frye, Spyder and Juicy Couture. Another highlight was our Seven Global and Kent & Curwen partnership which extends the David Beckham brand to the menswear product category.”