Global Brands Group cuts losses, revenue improves 4.6 percent

Global Brands Group Holding Limited, announcing its results for the 12-months ended March 31, 2019 said that revenue of the group’s continuing operations decreased by 4.6 percent compared to last year, primarily due to eliminating unprofitable businesses.

While net loss of the continuing operations increased to 250 million dollars, net loss attributable to shareholders improved by 55.7 percent to 400 million dollars. The company also said that following the completion of a strategic divestment in October last year, which involved select North American licensing businesses, the group has been transformed into a leaner and more focused operation.

Global Brands Group launches restructuring programme

The group also said it launched a restructuring programme focused on flattening its structure and building a more responsive organization. The programme involves several initiatives, including simplifying its processes from design to product development to sourcing, and moving those functions offshore, closer to where production is located.

Commenting on the update, Rick Darling, Chief Executive Officer of Global Brands said in a statement: “Global Brands has entered into a new chapter as a nimble and more focused organization. The changes we are implementing have put Global Brands in a strong position. We are already beginning to see the benefits, with the results in the second half of the fiscal year significantly improved from the first half.

“The restructuring program we announced in November last year aimed at further improving our operating efficiencies. I would like to report that we are now making significant strides towards achieving our target of reducing 100 million dollars in operating expenses and are well on our way to exceeding this initial target. Our goal is to complete the restructuring program by the end of the 2020 fiscal year.”

The group now manages businesses in three segments: North America, Europe, and brand management.