Global Brands Group H1 sales decline by 46 percent

Global Brands Group Holding Limited, during the six months to September 30, 2020 saw the closure of retail stores in global markets, which the company said, affected customers, retailers, and brand owners as social distancing restrictions were implemented around the world due to the Covid-19 pandemic. As a result of which, the group’s revenue declined by 46.1 percent to 290 million dollars, compared to the same period last year, while the group’s total margin declined by 92 million dollars while the margin rate remained stable at 35.4 percent.

Commenting on the first half trading, Rick Darling, Chief Executive Officer of Global Brands Group Holding Limited, said in a statement: “The Covid-19 pandemic has posed unprecedented challenges to our lives and to the industry. Amidst this uncertain backdrop, the group has transformed its business and focused on growth in new areas.”

The company added that the reduction in revenue and total margin were partially offset by 51 million dollars decrease in operating costs, resulting in a positive cash position and a positive EBITDA of 15 million dollars for the period.

“Despite this challenging environment, our DTC business has grown to 22 percent of our revenue, compared to 12 percent in the first half of FY2020, while margin on the DTC business has reached 66 percent, an increase of 600bps over the same period last year. Our DTC model will continue to develop and will impact positively the future profit generation of the group,” added Darling.

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