New | Li & Fung spin-off Global Brands says turnover up 5pc to US$3.45 billion
Retailer cites 'relatively difficult' market, weak US economy for 8.2 per cent earnings decline
Global Brands Group Holding, the Bruce Rockowitz-led purveyor of mid-market consumer brands, announced on Thursday a 5 per cent increase in turnover to US$3.45 billion and hinted at the launch date for its David Beckham product range, the firm's first annual results since last summer's spin-off from Li & Fung.
Rockowitz cited a "relatively difficult" environment and weaker-than-expected US economic growth, with revenue a fraction below analyst estimates of US$3.48 billion.
Net income fell 8.2 per cent while operating margins rose 10.6 per cent, helped by pruning low-margin brands from the firm's platform, said Rockowitz.
The company will focus on expanding retail and e-commerce networks outside the US market, which accounts for 80 per cent of company revenue.
Core operating profit grew 15.2 per cent to US$154 million.
There was no dividend.
The HK$10.36 billion market-cap Global Brands holds the licences for Disney characters and lifestyle brands such as Juicy Couture, Frye and Kate Spade, mostly focusing on the American "masstige" sector - the space between prestige and mass-market brands.