×
178
Fashion Jobs
AESOP
Retail Consultant | Part-Time (30 Hours) & Full-Time | Aesop City of Stockholm
Permanent · STOCKHOLM
ASICS
Sales Representative
Permanent · Stockholm
PUMA
Senior Key Account Manager Sportstyle Nordic
Permanent · Solna
H&M
Global Head of Marketing h&m Sport
Permanent · Stockholm
H&M
Project Leader For Material Certification And Material Trademark Within Group Compliance
Permanent · Stockholm
PUMA
Project Manager IT Sap
Permanent · Solna
PUMA
Senior Manager Merchandising Puma Golf Europe
Permanent · Solna
H&M
Art Director – h&m Group Communications
Permanent · Stockholm
H&M
Data Analyst to Predictive Analytics Team @h&m Business Tech
Permanent · Stockholm
H&M
Data Analyst to an Inventory Optimization Team in Business Tech
Permanent · Stockholm
H&M
Business Minded Data Specialist to h&m Group
Permanent · Stockholm
H&M
Scrum Master (Service Now) to Support And Operations Toolings Team at h&m Business Tech
Permanent · Stockholm
H&M
we Are Looking For Business Intelligence Analysts to Group Expansion, h&m
Permanent · Stockholm
H&M
Business Intelligence Analyst
Permanent · Stockholm
H&M
Cyber Security Trainer
Permanent · Stockholm
H&M
Security Advisor
Permanent · Stockholm
H&M
h&m is Looking For a Business Expert For Allocation Precision
Permanent · Stockholm
H&M
Power bi Specialist to Kpi Dashboards Within Business Tech
Permanent · Stockholm
H&M
ai Learning & Development Manager
Permanent · Stockholm
H&M
Import-Export Manager to h&m Distribution Centre in Eskilstuna
Permanent · Eskilstuna
H&M
Scrum Master to Support & Operation Tooling, Monitoring & Insights Team at h&m Business Tech
Permanent · Stockholm
H&M
Business Expert Full-Stack 3d Garment Specialist
Permanent · Stockholm
Published
Jul 1, 2020
Reading time
2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Global Brands Group storms ahead with restructuring, stumbles on coronavirus

Published
Jul 1, 2020

In a fiscal year when the Hong Kong-based brand management company embarked on an ambitious restructuring program and had to face up to the disruptions caused by the Covid-19 pandemic, Global Brands Group Holding Limited (GBG) saw its revenue fall 28.5%.
 

GBG's owned brand portfolio includes Spyder, Frye and Aquatalia - Instagram: @thefryecompany


For the fiscal year ended March 31, 2020, the company, which owns brands including Frye, Spyder and Aquatalia, reported revenues of $1.08 billion, compared to $1.51 billion in the previous year.
 
Revenue’s in GBG’s North America segment fell 38.5%, from $1.04 billion to $644 million, while the company’s Europe segment posted a 5.3% drop, from $374 million to $354 million. Revenues in the group’s brand management business totaled $84 million, down 8.9% compared to $92 million.

The company’s operations were first impacted by Covid-19 in January, when the outbreak began to cause supply chain disruptions in China. When the virus spread to Europe and the U.S. in March, the almost complete shutdown of brands and retailers led the group to lose around $100 million in revenues at the end of the fiscal year.
 
However, the decrease in GBG’s revenue reflected not only the negative financial impact of the coronavirus crisis, but also the effect of the company’s rationalization of unprofitable brands.
 
These actions were part of GBG’s wider restructuring efforts, which have three main goals: the improvement of total margin rate, the reduction of operational expenses and the increase of EBITDA.
 
The company was keen to point out that it has seen “positive outcomes in each of these three areas,” with GBG CEO Rick Darling emphasizing that, prior to the pandemic, the group’s progress on these fronts exceeded its own expectations.
 
Indeed, the company’s total margin rate for the full fiscal year 2020 was 36.6%, up 640 basis points from 33.3% in the previous year, while annual operating expenses fell from $701 million to $492 million. EBITDA was $151 million, compared to a negative $19 million in the previous year.
 
Nonetheless, GBG’s annual net loss ultimately totaled $598 million, widening from a loss of $400 million in fiscal 2019.
 
“While our fiscal year 2020 was successful in accomplishing our goal of returning to profitability, the
issues related to the onset of the Covid-19 virus continue to challenge the group,” explained Darling in the company’s financial report. “The group has taken all necessary steps to react to this
unprecedented situation, including further reducing operating costs, reducing purchases, and
preserving cash to allow us to manage through this period.”
 
As well as its owned brands, GBG holds a wide range of licenses, including Calvin Klein, Karen Millen and All Saints in the fashion sector.

Copyright © 2022 FashionNetwork.com All rights reserved.